PPG.L Share News (PPG)

(ShareCast News) - Plutus PowerGen (PPG) was preparing to launch a number of listed bonds on Wednesday in a bid to raise cash for its next tranche of power generating projects.The AIM-traded power company focused on the development, construction and operation of flexible stand-by generation in the UK had previously stated it was committed to raising the total funding of £5.4m required for each 20MW project.To date, the nine projects for which PPG held management contracts had been equity funded by third parties, with PPG not holding a majority shareholding.To capture a greater return for the company and to maximise its exposure to project uplift in the future, PPG was aiming to secure larger majority stakes in projects of between 80% and 100% going forward.The company's board said it believed funding for each new project could comprise of 80% debt and 20% equity funding, and it expected the equity portion would be funded by PPG.Accordingly, it had appointed a corporate finance house to raise a minimum of £3.5m by way of a five-year listed bond."We believe that the next important milestone for PPG is the delivery of non-dilutive financing for individual projects in which the company has a majority or 100% stake," said CFO James Longley."Our success in gaining £33.2 million from Rockpool for our first nine projects is testament to the strong appetite for flexible energy generation projects in the UK due to the considerable supply / demand imbalance, and in consideration of this, I am delighted to have commenced work to raise a minimum of £3.5 million via a listed bond," he added.At the same time, PPG was in discussions with a range of third-party debt providers for senior lending for the debt component of the individual projects.It expressed confidence that the projected cash flow from the 20MW projects was capable of servicing both interest and capital repayments on the increased element of debt funding.