eEnergy Group shares rose on Friday after announcing a financing agreement with National Westminster Bank Plc (NatWest).
eEnergy Group has partnered with NatWest to provide up to £40 million in project funding to finance energy efficiencies for public sector customer’s onsite power generation projects.
The new financing solution, tailored exclusively for eEnergy’s public sector clients, will drive efficiencies by enabling cost-effective adoption of the company’s full range of energy transition technologies. eEnergy will own and operate each project through a dedicated special purpose vehicle, retaining ownership and benefiting directly from the economics.
Structured with flexibility in mind, the 12-year facility consists of two £20 million tranches designed to match expected drawdowns. The second tranche becomes accessible once 75% of the first is deployed.
eEnergy Group shares were 22% higher at the time fo writing.
“We are extremely pleased to announce this £40m Facility with NatWest, marking the beginning of a new collaboration between our two organisations. This Facility is the result of significant investment in honing our proposition to public sector customers and gives eEnergy a clear competitive advantage in the market. It also allows us to offer our leading net zero energy efficiency services to larger multi-site projects and contracts. This Facility has been structured to allow us to scale rapidly in a large addressable UK market,” said Harvey Sinclair, eEnergy CEO.
“What is particularly exciting about this new Facility is its innovative structure which will lower our cost of capital and also provide us with longer-term economic upside on each project.
“We look forward to this new relationship with NatWest which we hope is a start of a much longer-term relationship given the opportunities available.”
