Gresham House Energy Storage Fund has secured a £380m bespoke funding package from NatWest bank with support the growth of its UK energy storage pipeline.
The funding will help finance seven newly announced battery energy storage projects due to be completed in 2022.
Agreed over a five-year period, it comprises a £150m capex term loan, a £30m working capital facility and £200m uncommitted accordion.
Part of the funds will also be used to repay a maturing bond.
Ben Guest, Gresham House Energy Storage Fund manager, said: “Introducing a modest amount of cost-effective leverage to the portfolio has been an ambition since IPO and we’re delighted with the successful completion of this transaction, the terms achieved and the quality of the institutions that have taken part.
“We recently set out ambitious plans to significantly increase the size of our portfolio over the next two years, given the UK’s need to increase battery storage capacity tenfold by the middle of this decade. This facility will provide us with the financial headroom to achieve our growth plans.”
Jacob Lloyd, energy director, specialist asset finance at NatWest, said: “Due to the intermittent nature of wind and solar output, battery energy storage systems are key to the decarbonisation of the UK’s energy grid.”