Ncondezi Energy Ltd (LON:NCCL) has completed on its previously announced US$500,000 bridge loan between its wholly owned renewables subsidiary, Ncondezi Green Power and certain company directors. The money will be used to finance the construction of its 400kWp solar PV plus 912kWh battery storage project in Mozambique.
The Ncondezi directors in question are chairman Michael Haworth, chief executive Hanno Pengilly and non-executive Scott Fletcher.
Project implementation is already ongoing, with over 50% of solar photovoltaic panels mounted.
“Today’s announcement ensures that our maiden solar PV and battery storage project is fully financed to commission in late June 2021,” Pengilly said.
“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 cashflow.”
The project also represents a significant opportunity for the company to establish first mover advantage in the Mozambique solar and battery storage sector, which is expected to be a high growth sector over the coming years.
“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,” continued Pengilly.
“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.”