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Rame Energy aims for £2.8mln from fund raise at premium

Published: 09:22 28 Apr 2016 BST

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Rame wants to issue shares at a premium

Rame Energy (LON:RAME) intends to raise £2.8mln through a private placing at a substantial premium to yesterday’s market price. 

The Chile-focused wind power group said it will issue shares at 9p along with warrants exercisable for five years at 18p.

A US broker has been appointed to find investors.

US investment companies are keen on utility stories at present as they look for income alternatives as sovereign bond rates turn negative.

Shareholders have to approve the placingm which will be accompanied by an open offer at the same price, Rame said.

Earlier this week, Rame announced a US$4mln development loan with InterEnergy Holdings to develop 11 projects in Chile with 210Mw capacity.

InterEnergy is a specialist investor in Latin American and Caribbean power projects and previously bought Rame’s Raki and Huajache projects.

It has also agreed to buy Punta Chome and Raki Sur, both of which are under development. 

Rame said it will use the placing funds to help get these projects to 'ready to build status'  (RTB ) by the end of 2017.

InterEnergy has the option to buy any of these projects once RTB status is achieved.

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