Chariot Ltd's (AIM:CHAR, OTC:OIGLF) shares surged 21% in early trading after the company secured a $75 million funding package for its South African electricity trading business, Etana Energy.
The deal includes $55 million in guarantee financing from Standard Bank and up to $20 million in equity investment from Standard Bank and Norfund, a Norwegian state-backed investment fund.
Etana, 49% owned by Chariot and 51% by H1 Holdings, connects renewable energy projects with businesses in South Africa, using the national grid to deliver cleaner, more affordable power.
"This transaction provides balance sheet support and unlocks further generation projects, funding rapid, scalable growth," said Chariot CEO Adonis Pouroulis.
In a further boost, Etana has now signed a 20-year Power Purchase Agreement for the entire 75MW Du Plessis Dam PV2 solar project. The project, developed by South African renewables specialist Mulilo, has reached financial close, with construction set to begin in the second quarter of the year.
In early trading, the stock was up 0.3p at 1.7p.