Ncondezi Energy Limited has announced the completion of the US $500,000 bridge loan between its wholly owned renewables subsidiary, Ncondezi Green Power and certain Company Directors to finance the construction of its Commercial and Industrial (C&I) 400kWp solar PV plus 912kWh battery storage project located in Mozambique.
Ncondezi Chief Executive Officer, Hanno Pengilly said that the announcement ensures that the maiden solar PV and battery storage project is fully financed to commission in late June 2021. It brings the Company one step closer to completing the first of C&I solar and battery off-grid projects.
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400kWp solar PV plus 912kWh battery storage project
“The Project also represents a significant opportunity for the Company to establish first mover advantage in the Mozambique solar and battery storage C&I 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,” he said.
“Having reviewed a number of funding options, the Directors believe that the Bridge Loan is the best way forward from a cost, speed of execution and certainty of funding perspective, whilst also ensuring that the Company is still in control of its renewable energy strategy. The Bridge Loan structure provides the Company with additional advantages including the ringfencing 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,” he added.
“All equipment has been successfully transported to Mozambique and the installation of solar panels is over 50% complete,” he revealed.
