(Sharecast News) - Waste-to-fuel specialist Eqtec announced approval from Banca del Fucino, a historic private banking group based in Rome, to draw down a €2.9m loan facility on Tuesday.
The AIM-traded firm said the facility would provide financial support to Eqtec Italia MDC, the owner of the Italy Market Development Centre, located in Gallina, near Castiglione d'Orcia in Tuscany.
It said the approval followed Italia MDC's successful completion of operational performance improvements and meeting the criteria set by the lender, as it announced on 21 December.
The lender conducted a site visit to the plant on 10 January, accompanied by Italia MDC staff and shareholders, including representatives from Eqtec.
It said the facility had a 48-month term with an annual interest rate of 2.5% over six-month Euribor, currently approximately 3.9%.
MedioCredito Centrale, controlled by the Italian Ministry of Economy, was guaranteeing up to 80% of the loan.
Italia MDC intended to promptly use the full facility to support the plant's business plan and fund additional performance enhancements.
Part of the loan would also be directed towards repaying shareholder loans that had contributed to the project, including around €2.6m provided by Eqtec.
The plant, which started operations in March last year, underwent a successful handover to Italia MDC in June, marking a significant step in Eqtec's efforts to power distributed, decarbonised new energy infrastructure through innovative waste-to-value solutions.
"We are delighted to have achieved this significant milestone with Italia MDC," said chief executive officer David Palumbo.
"The whole team at Eqtec and Italia MDC have worked relentlessly, aligning technical, operational and commercial activities to achieve the outcome milestone."
Palumbo said the financing by Banca del Fucino, a traditional primary lender, indicated its confidence in Eqtec's business proposition and underlined its investment strategy towards new energy solutions and supporting innovation.
"We remain committed to making Italia MDC a showcase of local capability, with new energy infrastructure in Italy and a demonstration of Eqtec syngas technology in a live, efficient and sustainable business."
At 1407 GMT, shares in Eqtec were up 89.91% at 4.27p.
Reporting by Josh White for Sharecast.com.
Eqtec (EQT)