Gresham House Energy Storage Fund raises GBP15m through bond issue
Gresham House Energy Storage Fund, the UK's largest operational utility-scale battery storage fund, has raised approximately GBP15.0 million by issuing, through its wholly owned subsidiary, Gresham House Energy Storage Holdings, a mixture of short-term and medium-term secured power bonds (the GRID Power Bonds).
The majority of the proceeds will be used to acquire an operating asset which is in the final stages of due diligence with an agreement expected to be concluded during the fourth quarter. The addition of this project to the Company's existing portfolio of operational assets should be accretive to the Fund's cash flow and NAV per share.
The GRID Power Bonds provide the Company with flexible fixed rate financing terms with low arrangement, legal and other ancillary fees as compared to a typical revolving credit facility or project finance. The GRID Power Bonds will pay interest semi-annually, in arrears, in equal instalments at a fixed rate of 5.0 per cent. The Company intends to refinance the short-term GRID Power Bonds, representing an aggregate amount of GBP7.0 million, within the next 12 months.
The Issuer may issue further series of GRID Power Bonds, up to an aggregate subscription amount of GBP40.0 million. The offer period for GRID Power Bonds will be open until July 2021 to, among other things, assist with the acquisition of further battery storage projects.