eEnergy Group shares jump after securing £40m financing

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.

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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.

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“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.”

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