International law firm CMS has advised Harmony Energy Income Trust plc (HEIT), an investment company that invests in battery energy storage systems in the UK, in relation to an amendment and restatement of a portfolio finance facility entered into with a wholly owned subsidiary of HEIT.
The enhanced facility, negotiated with NatWest plc and Coöperatieve Rabobank U.A., gives HEIT access to an additional £50 million of term debt, taking the total term facility to £110 million. In addition, HEIT and the banks negotiated an RCF tranche of £20 million. HEIT only expects to draw down on the enlarged facility over time upon meeting certain construction milestones and does not expect to be fully drawn until at least Q4 2023, if at all, at which point HEIT expects to have eight projects in operation with total capacity of ca.400 MW / 800 MWh.
Norman Crighton, Chair of Harmony Energy Income Trust plc, said: "This extended facility, whilst it may never need to be fully drawn, does give the Company certainty of funding needed to commence construction of two recently acquired 2-hour BESS projects. We thank NatWest and Rabobank for their support and the flexibility it has afforded us with this new financing package."
The CMS team was led by Energy Finance partner Nicholas Ross-McCall, supported by Energy partners Louise Dalton and Philip Duffield. Nick Ross-McCall commented: “We are delighted to have assisted Harmony again in securing additional funds to support its latest UK battery storage assets”.
This is the latest in a series of significant battery storage deals CMS has advised on in recent months, reinforcing the firm’s market-leading position in this space.
