All subjects
Heat & Power

SIMEC Atlantis woos South Korean won for Uskmouth Power

The international renewable energy project developer, owner, and operator SIMEC Atlantis Energy has announced that its wholly-owned subsidiary, SIMEC Atlantis Energy Ltd, has entered into an exclusive debt financing agreement with South Korean financial institution Hana Financial Investment Co., Ltd (HFI) to work together to fund 100 percent of Phase 1 (110MW) of the Uskmouth power plant coal conversion project in the UK.

In the UK, SIMEC Atlantis Energy Ltd has entered into an exclusive debt financing agreement with South Korean financial institution Hana Financial Investment Co., Ltd (HFI) to work together to fund 100 percent of Phase 1 (110MW) of the Uskmouth power plant coal conversion project in Wales.

The senior secured loan facility to SIMEC Uskmouth Power (SUP) will, if agreed, provide up to GBP170 million (≈ EUR 188.6 million) towards capital and development expenditure, operating costs, fees and interest. It will also provide an equity bridge loan, throughout the construction phase.

HFI and SUP will continue to work closely to refine the financing package over the remaining period to financial close.

This agreement is not legally binding save as to a six month period of exclusivity, which may be further extended by mutual agreement and is subject to borrower rights of termination including ongoing assurances regarding the ability of both parties to deliver against the terms.

The framework agreement is intended to be replaced by full form loan documents prior to financial close. The agreement is subject to a number of conditions precedent including HFI completing its due diligence on the Uskmouth Power conversion project, and agreeing to satisfactory transaction documentation.

We are delighted to enter into this agreement with Hana and are looking forward to working closely with them to achieve financial close on our flagship project. Hana is a market leader and not only one of the largest financial groups in Korea but a global investor and one we are proud to work alongside. This agreement with Hana reflects the high level of international interest our world-leading conversion project has and we believe that this is a stepping stone to further conversion opportunities across Asia and indeed globally, said Tim Cornelius, CEO of SIMEC Atlantis Energy Ltd

Most read on Bioenergy International

Get the latest news about Bioenergy

Subscribe for free to our newsletter
Sending request
I accept that Bioenergy International stores and handles my information.
Read more about our integritypolicy here