- Genex Power (GNX) has received final credit approvals from Infradebt for a $35 million debt facility
- The funds will support the construction of the Bouldercombe Battery Project, which Genex says will be one of the first standalone battery energy storage systems in QLD
- The company have also executed a cooperation deal to continue to work together to finance further battery energy storage projects in Australia
- Along with this announcement, Genex has placed its shares in a trading halt pending a ‘material capital raise’ but no further details have been released
- GNX shares last traded at 17 cents on February 18
Genex Power (GNX) has received final credit approvals for a $35 million debt facility with Infradebt.
Infradebt is a specialist financier for infrastructure projects with a focus on the renewable energy/decarbonising real assets space, having financed 27 projects since its inception.
The loan is aimed at supporting the construction of the Bouldercombe Battery Project (BBP) in central Queensland.
According to Genex, the BBP is set to be one of the first standalone large-scale battery energy storage systems in Queensland and will further diversify its portfolio of renewable energy generation and storage assets.
Terms of the loan include a fixed interest rate over 12 years from the commencement of operations, which is scheduled for the second half of 2023.
Genex said the debt facility provides leverage against both the fixed and floating revenue streams under the offtake arrangements with Tesla Motors Australia, allowing the company to maximise leverage and project economics.
“We are extremely pleased to have reached an agreement with Infradebt for the $35 million debt facility for the Bouldercombe Battery Project,” CEO James Harding said.
Additionally, Genex signed a cooperation agreement with Infradebt to continue working together to finance further battery energy storage projects in Australia, which could have
significant exposure to merchant revenue streams.
Soon after this announcement, the company entered a trading halt regarding a ‘material capital raising’.
It isn’t clear how much Genex Power will raise, however the funds are likely to go towards the development of its 50-megawatt/100-megawatt per hour BBP project, but this hasn’t been stated for certain.
The company expects to remain in the trading halt until Wednesday, February 23, by which time the details will most likely have been revealed.
GNX shares last traded at 17 cents on February 18.