Chariot Ltd (AIM:CHAR, OTC:OIGLF) announced that a $100 million guarantee finance facility has been secured for Etana Energy.
The financing was provided by British International Investment (BII) and GuarantCo, each for $50 million.
The financing will enable Etana Energy, a joint venture owned by Chariot (49.00 percent) and H1 Holdings (51.00 percent), to unlock up to $500 million in renewable energy developments, equating to a total generation capacity of approximately 500 MW from wind and solar projects.
"Securing such substantial guarantees from these multi-national financing institutions provides strong validation of Etana's business model,” Chariot chief executive Adonis Pouroulis said.
“Being a business that we co-founded, this endorses Chariot's strategy to diversify into different types of assets and regions where we see rapid, scalable growth under the umbrella of transitional energy in Africa.
“These guarantees are the important first stage of the ongoing financing process required for the bankability of Etana which is being carried out at the subsidiary level."
Etana Energy’s model facilitates the connection of power generation projects to commercial and industrial users via South Africa’s national grid.
It ensures developers achieve the revenue certainty needed to commence new projects.