Gresham House Energy Storage Fund intends to raise £80m through a share placing to support its upcoming renewable energy projects. The majority of the new equity will be allocated to finance Project Iliad, a venture in California, US, involving 160MW of solar projects paired with four-hour battery systems. To complete Project Iliad, a total equity consideration of £135m is required, and the company has made progress over the past six months, anticipating substantial net asset value (NAV) per share gains upon full commissioning.
The proposal entails offering ordinary shares of 1p each to institutional investors, with the aim of raising the targeted gross proceeds of approximately £80m. Additionally, Gresham House Energy Storage Fund will extend a separate offer of new ordinary shares on the REX platform exclusively to existing retail shareholders in the UK. The combined placing and retail offer represent a maximum of 10% of the company's current issued ordinary share capital.
As of now, the fund possesses 590MW of operational projects, and it achieved an EBITDA of £48.8m in 2022. Moreover, it has 437MW of fully funded projects currently under construction in Great Britain, with the goal of commissioning them by the end of 2023, thereby increasing operational capacity to over 1GW.
The fund has also identified a pipeline of potential projects totaling 390MW, expected to be commissioned in 2024. This pipeline includes 230MW of projects within Great Britain that can be financed using existing funds, along with the 160MW Project Iliad.
