Term Sheet for Project Development Funding Signed

RNS Number : 5902P

Mast Energy Developments PLC

20 October 2021

 

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

20 October 2021

Mast Energy Developments Plc ("MED" or "the Company")

Company signs Term Sheet for Project Development Funding

Mast Energy Developments Plc, the UK-based multi-asset operator in the rapidly growing Reserve Power market and currently with c. 20 MW Reserve Power sites under its direct control and development, is pleased to announce that Close Leasing Ltd, a subsidiary of Close Brothers Group plc (the "Lender"), have offered facilities to fund the development and construction of the Company's two owned Reserve Power projects currently in development, Bordersley and Rochdale (the "Projects"). 

The facilities are offered subject to the successful completion of due diligence (including legal, technical and financial) and other relevant regulatory checks and approvals.  Final details of the facilities will be confirmed at financial close. 

Louis Coetzee, Non-Executive Chairman at MED, said:   "We are very pleased with the funding facilities offered by an investment grade financier such as Close Brothers and their willingness to partner with MED, which is another very important key step in continuing to build MED's ever growing projects portfolio. We look forward to working with the Close Brothers team."

Paul Venter, CEO at MED, said:   "MED Management and its team of selected services providers remain focussed on the task in hand and rolling out of the Board of Directors' declared strategy. The funding now in place is another milestone achieved."

Chris Rodgers, Managing Director at Close Brothers Leasing, said: "The funding of transitional fuel projects that provide electricity to meet demand and balance the national grid is an important step towards our net zero objectives.  We continue to support investment into the renewable energy and reserve power sectors.  We look forward to working with the MED team through the due diligence process towards financial close of the senior loan facilities."

Background and Transaction Rationale

The Company is targeting the establishment of a 300 MW Reserve Power portfolio in the UK, and to date has acquired assets totaling 18.4 MW generating capacity. The Bordersley and Rochdale sites are at an advanced stage of development and early construction with all required licensing and connection offers in place. Power purchase agreements will be in place with investment grade offtakers for all the generation capacity currently owned by MED.

The Facility secured for Bordesley and Rochdale will provide funding for the development and operating costs of the projects, the major initial outlay being for the purchase, installation and commissioning of the gas reciprocating engines on the sites.

The MED portfolio currently owned by the Company and under active development comprises 18.4 MW of which 9 MW is already in production, with a pipeline totaling a further 71 MW currently under assessment. The anticipated net profit stream from the Pyebridge, Bordesley and Rochdale facilities, totaling 18.4 MW, will be c. £ 92,000 per month by Q2 2022, the time at which it is expected that all three sites will be fully operational and in steady state production.

The Company's ongoing discussions with the Lender includes possible funding opportunities in respect of a number of pipe-line Reserve Power shovel-ready and operating sites that MED is actively negotiating on and for which due diligence is near completion on some.

About Close Brothers

Close Brothers is a leading UK merchant banking group providing lending, deposit taking, wealth management services and securities trading.   They employ over 3,700 people, principally in the UK. Close Brothers Group plc is listed on the London Stock Exchange and is a member of the FTSE 250.  Founded in 1878 in London, Close Brothers has an established reputation as a responsible bank with a distinctive, prudent business model and a long-term approach.

Further information on the Company, including the prospectus published in conjunction with Admission, can be found on the Company's website: www.med.energy

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

ENDS

For further information please visit www.med.energy or contact:

Louis Coetzee	info@med .energy	Mast Energy Developments plc	Non-Executive Chairman
Jonathan Critchley & Keith Swann	[phone]	Clear Capital Markets	Joint Broker
Chris Hardie & Sarah Mather	[phone]	WH Ireland Ltd	Joint Broker

 

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