Baseload Capital secures EUR25m debt to finance geothermal projects

Baseload Capital secures EUR25m debt to finance geothermal projects Pictures from drilling start at geothermal project, Taiwan (source: Van Hoang, BaseloadCapital Taiwan)
Alexander Richter 23 May 2022

With debt funding of EUR 25 million secured from an investment fund, Baseload Capital expects to further push its geothermal development projects internationally.

Baseload Capital Sweden AB has announced that it has signed a EUR 25 million convertible term facility agreement (debt financing) with SDCL Energy Efficiency Income Trust plc (SEEIT).

The Facility will be used to re-finance Baseload’s operational assets and assets in construction or late-stage development as well as to finance future pipeline projects. The Facility can be utilized during the availability period and has a 10-year tenor after each draw down. The funding is eligible when the bond is redeemed.

Alexander Helling, the CEO of Baseload Capital says, “We’re extremely excited because this Facility enables Baseload to roll out projects faster and provide project financing to assets under development and construction.  It is optimally structured for a company like Baseload with a portfolio of geothermal assets in various development phases. SEEIT is an esteemed investment company listed on the London Stock Exchange and a constituent of the FTSE 250 with a strong focus on sustainability and ESG. We are very happy to have SDCL as our important financing partner.”

SEEIT was launched to facilitate investment into environmental infrastructure markets. It has always focused on investing in projects that are good for the environment, good for people and commercially sustainable.

Commenting further on the investments, Purvi Sapre, Fund Manager of SEEIT, said: “The Baseload Capital investment provides heat and power generated locally from geothermal sources and is a great example of high efficiency renewable district energy generation. The investment generates income straight away and, as such, contributes to meeting both SEEIT’s yield and total return targets.”

SDCL Energy Efficiency Income Trust plc is a constituent of the FTSE 250 index. It was the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Its projects are primarily located in the UK, Europe and North America and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of commercial and industrial solar and storage projects in the United States, a regulated gas distribution network in Sweden and a district energy system providing essential and efficient utility services on one of the largest business parks in the United States.

Source: company release via Cision