(Sharecast News) - Ncondezi Energy announced the completion of the $0.5m bridge loan between its wholly-owned renewables subsidiary Ncondezi Green Power (NGP) and certain company directors on Tuesday, to finance the construction of its commercial and industrial 400kWp solar photovoltaic and 912kWh battery storage project in Mozambique.
The AIM-traded firm said the maiden commercial and industrial project was fully financed, for target commissioning in June.
It said the bridge loan was entered into between NGP, chairman Michael Haworth, chief executive officer Hanno Pengilly and non-executive director Scott Fletcher.
Project implementation progress was ongoing, including the completion of over 50% of solar photovoltaic panels mounted, along with site layout marking and the battery plinth.
"Today's announcement ensures that our maiden solar PV and battery storage project is fully financed to commission in late June 2021," said CEO Hanno Pengilly.
"It brings the company one step closer to completing the first of our pipeline of commercial and industrial solar and battery off-grid projects and to our first cash flow.
"The project also represents a significant opportunity for the company to establish first mover advantage in the Mozambique solar and battery storage commercial and industrial sector, which is expected to be a high growth sector over the coming years as corporates and industrials look to aggressively implement sustainable forms of self power generation."
Pengilly said that, having reviewed a number of funding options, the directors believed that the bridge loan was the "best way forward" from a cost, speed of execution and certainty of funding perspective, while also ensuring that the firm was still in control of its renewable energy strategy.
"The bridge loan structure provides the company with additional advantages including the ring fencing of debt at the Ncondezi Green Power subsidiary level and additional optionality and time to further explore refinancing options.
"The company plans to refinance the bridge loan once the project enters commercial operation and has been materially de-risked, although discussions with potential funders have already begun.
"All equipment has been successfully transported to Mozambique and the installation of solar panels is over 50% complete."
At 1307 BST, shares in Ncondezi Energy were down 1.37% at 3.6p.
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