Clean-technology company EQTEC PLC (AIM:EQT) has entered into a €2.9 million (£2.5 million) loan facility to refinance its Italian market development centre located in Gallina, near Castiglione d'Orcia, Tuscany.
The facility lasts for 48 months with an annual interest rate of 2.5% over the six-month euro interbank offered rate (Euribor), which at the time of announcement makes the interest rate approximately 6.5%.
Banca del Fucino, a historic private banking group based in Rome, is providing the loan, which is guaranteed up to 80% by MedioCredito Centrale, the Italian bank owned by the Italian Ministry of Economy.
Provision of funds through the facility is subject to the market development centre's achievement of certain performance criteria set by the Banca del Fucino.
EQTEC Italia MDC, the operating company for the market development centre, is implementing a series of performance improvements anticipated to be completed in the fourth quarter of 2023, at which point Italia MDC will draw down the full facility.
David Palumbo, chief executive of EQTEC, commented: "The facility indicates strong support for Italia MDC from a traditional primary lender and represents trust in its shareholders and commitment to supporting new energy infrastructure across Italy.
“We are committed to supporting Italia MDC with continuous improvements that will ensure the plant remains a shining example of EQTEC technology in action."