RNS Number : 2214M

Gresham House Energy Storage Fund

20 September 2021


20 September 2021

Gresham House Energy Storage Fund plc

("GRID" or the "Company")

GBP180m debt facility secured

   Unlocks further pipeline deployment of grid scale battery storage   opportunities 

Gresham House Energy Storage Fund plc, the UK's largest fund investing in utility-scale battery energy storage systems, is pleased to announce it has agreed a new five year GBP180m debt facility (the "Facility") with a syndicate of banks including Commonwealth Bank of Australia, Lloyds Bank, NatWest and Santander.

The Facility comprises a GBP150m capex term facility and a GBP30m revolving working capital facility. The interest rate is 300bps over SONIA (before hedging). The capex facility also provides for an uncommitted accordion which could increase the total amount borrowed up to GBP380m over time.

These proceeds will be used to fund the remainder of the Subsequent Pipeline which was announced in July. The Facility may also be used for other projects.

As part of the closing of this transaction, GRID shall repay the GBP8m of outstanding Power Bond debt.

John Leggate, CBE, Chair of Gresham House Energy Storage Fund plc, said:

"Achieving this benchmark transaction demonstrates the pace at which Britain's energy storage market is maturing. Our ability to scale GRID's operating portfolio to match the rapid growth in renewable power generation in the UK ensures that we remain at the forefront of the industry's development and opportunities.

"With this facility, GRID is taking a measured approach to leverage and optimising the capital structure on attractive terms".

Ben Guest, Lead Fund Manager and Managing Director of Gresham House New Energy, commented:

"We are delighted with the successful completion of this transaction, the terms achieved and the quality of the institutions that have taken part. Introducing a modest amount of cost-effective leverage to the portfolio has been an ambition since IPO. It allows us to significantly reduce both cash drag and our weighted average cost of capital, even at a relatively low leverage ratio of 25-30% once fully drawn. It will also allow us to improve dividend cover for a given revenue level, which is a key goal for the Manager.

The Manager and Board would like to thank the Jefferies Debt Advisory Team very much for introducing this opportunity and for managing the transaction so smoothly on the Company's behalf."

For Further Information

Gresham House New Energy 
 Ben Guest 
 Rupert Robinson                  +44 (0)20 3837 6270 
Jefferies International Limited 
 Stuart Klein 
 Gaudi Le Roux                    +44 (0)20 7029 8000 
KL Communications                 gh@kl-communications.com 
 Charles Gorman                    +44 (0)20 3995 6673 
 Will Sanderson 
 Millie Steyn 

About the Company and the Manager:

Gresham House Energy Storage Fund plc seeks to provide investors with an attractive and sustainable dividend over the long term by investing in a diversified portfolio of utility-scale battery energy storage systems (known as BESS) located in Great Britain, Northern Ireland, and the Republic of Ireland. In addition, the Company seeks to provide investors with the prospect of capital growth through the re-investment of net cash generated in excess of the target dividend in accordance with the Company's investment policy.

Gresham House Asset Management is the FCA authorised operating business of Gresham House plc, a London Stock Exchange quoted specialist alternative asset manager. Gresham House is committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.


Definition of utility-scale battery energy storage systems (BESS)

Utility-scale battery energy storage systems (BESS) are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK's stated target to reduce carbon emissions. They store excess energy generated by renewable energy sources and then release that stored energy back into the grid during peak hours when there is increased demand.

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