The information contained in this announcement is inside information under the Market Abuse Regulation (EU) No 596 / 2014. The person responsible for arranging the release of this announcement on behalf of SIMEC Atlantis Energy Limited is Tim Cornelius, Chief Executive Officer of SIMEC Atlantis Energy Limited.
21 August 2020
SIMEC Atlantis Energy Limited
Debt Financing Update for Uskmouth
SIMEC Atlantis Energy, the global developer, owner and operator of sustainable energy projects, is very pleased to announce that its wholly owned subsidiary, SIMEC Atlantis Energy Limited, has entered into an exclusive debt financing agreement with leading South Korean financial institution Hana Financial Investment Co., Ltd (“HFI”) to work together to fund 100% of Phase 1 (110MW) of the Uskmouth conversion project through a senior secured loan to SIMEC Uskmouth Power (“SUP”).
This facility if agreed will provide up to £170 million towards capital and development expenditure, operating costs, fees and interest. It will also provide an equity bridge loan, throughout the construction phase. HFI and SUP will continue to work closely to refine the financing package over the remaining period to financial close.
This agreement is not legally binding save as to a 6 month period of exclusivity, which may be further extended by mutual agreement and is subject to borrower rights of termination including ongoing assurances regarding the ability of both parties to deliver against the terms. The framework agreement is intended to be replaced by full form loan documents prior to financial close. The agreement is subject to a number of conditions precedent including HFI completing its due diligence on the Uskmouth Power conversion project, and agreeing satisfactory transaction documentation.
Tim Cornelius, CEO of SIMEC Atlantis Energy Limited commented:
“We are delighted to enter into this agreement with Hana and are looking forward to working closely with them to achieve financial close on our flagship project. Hana is a market leader and not only one of the largest financial groups in Korea but a global investor and one we are proud to work alongside.
This agreement with Hana reflects the high level of international interest our world-leading conversion project has and we believe that this is a stepping stone to further conversion opportunities across Asia and indeed globally.“
|Investec Bank PLC||+44 (0) 20 7597 5970|
|SIMEC Atlantis Energy Limited||+44 (0) 7739 832 446|
|Sean Parsons, Director of External Affairs|
Notes to Editors
SIMEC Atlantis Energy
Atlantis is a global developer, owner and operator of sustainable energy projects with a diverse portfolio in various stages of development. This includes a 77 per cent. stake in the world’s largest tidal stream power project, MeyGen, 100 per cent. of the 220MW Uskmouth Power Station conversion project and 100 per cent. of Green Highland Renewables, a leading developer of mini-hydro projects.