SIMEC Atlantis Nears GBP170 Million Loan to Fund First Phase of Uskmouth Project, Shares Rise
21 August 2020 - 5:37PM
Dow Jones News
By Jaime Llinares Taboada
Shares in SIMEC Atlantis Energy Ltd. rose Friday after it said
that it has entered into an exclusive debt financing agreement for
up to 170 million pounds ($224.6 million) with a South Korean firm
to fund the first phase of its Uskmouth conversion project in
Wales.
Shares at 0703 GMT were up 2.75 pence, or 15%, at 20.50
pence.
The developer of sustainable energy projects said the lender is
Hana Financial Investment Co. Ltd., and that the agreement binds
both to a six-month exclusivity period.
The company said the GBP170 million would cover the capital and
development expenditure, operating costs, fees and interest for the
first phase of Uskmouth. The facility would also provide an equity
bridge loan, it said.
"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," Chief Executive Tim
Cornelius said.
Uskmouth is an old coal power station located near Newport,
Wales. SIMEC has plans to convert it so that it operates using
plastic and biomass waste fuel pellets. The company said last month
that it would phase the project into two stages, with the first
phase comprising the conversion of 110 megawatts of generation
capacity--half the total 220-megawatt plan.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
August 21, 2020 03:22 ET (07:22 GMT)
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