(Alliance News) - Gore Street Energy Storage Fund PLC on Friday reported "positive developments" in the Republic of Ireland and an additional funding commitment from its strategic partner, the National Treasury Management Agency.
The investment firm said it has won two six-year fixed revenue contracts in the recent Irish government tender for storage. These projects are expected to start generate revenue for Gore Street from September 2021.
"This was a highly competitive auction process in which we secured 60 megawatts out of 110 megawatts awarded capacity," highlighted the company's investment adviser's Gore Street Capital Chief Executive Alex O'Cinneide.
"These projects, with six-year contracts, provide greater revenue visibility and stability moving forward," continued O'Cinneide.
"Additionally, we are also delighted to receive a further GBP9.5 million of capital from our strategic investment partners, National Treasury Management Agency, as we continue to grow the fund and diversify our assets under management to provide further sources of income for our shareholders," added O'Cinneide.
Under the subscription agreement, which was signed in June, Gore Street is eligible to draw down funds amounting to a maximum of GBP25.0 million from National Treasury Management Agency.
The agency will subscribe for new shares in Gore Street for a total investment equivalent to 40% of the Republic of Irend projects' acquisition and construction costs, the company said, which is about GBP9.5 million.
The admission of new shares is expected to become effective on Friday nest week, Gore Street said.
Gore Street shares were trading 0.5% higher in London on Friday at 93.50 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Gore Street En. (GSF)