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Gresham House Energy Storage Fund PLC on Monday said it has inked a new debt facility, refinancing its existing facilities and enabling the fund to execute on its growth plans. The London-based fund investing in utility-scale battery energy storage systems said the refinancing secures a £220 million loan from a syndicate of five lenders, with a legal maturity of 7 years. It also noted a 14-year amortisation profile. Gresham House Energy Storage said the facility has a margin of 225 basis points, or 2.25% above the Sterling Overnight Index Average. This compares to 300 basis points, or 3.0%, for the existing facility, reflecting lower borrowing costs. Through reducing its cost of debt, Gresham House Energy Storage said the new debt facility will release capital for its ‘Three-Year Plan’ and pave the way for a revised capital allocation policy. It noted that contracted cashflows are expected to fully cover ‘project level operational costs, interest, and debt repayments during the term of the loan.’ The fund said the refinancing replaces £195 million in senior debt facilities maturing in September 2028, £160 million of which has been drawn. It added that a debt service reserve facility of £18.6 million has been added, along with a short term VAT facility of £1.6 million ‘to improve working capital during the construction phase of project augmentations.’ ‘The upsized facility, combined with increased operational cashflow, provides capital for investment in augmentations and the acquisition of new pipeline projects,’ said the company. Shares in the fund rose 2.5% to 80.99 pence on Monday afternoon in London. Ben Guest, fund manager of Gresham House Energy Storage Fund commented: ‘With this refinancing, we are now able to execute on our exciting growth plans: augmenting the existing Portfolio to two hours and acquiring the project rights to grow megawatt capacity by c.70% from the construction of new projects. ‘The team has worked hard to put in place the project rights, designs and EPC agreements to start construction of the augmentations as soon as this refinancing has completed. ‘We also look forward to receiving the results of NESO’s Gate 2 process and putting in place the incremental senior debt and any other funding required to kick off construction of the new pipeline as well.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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