Chariot Ltd (AIM:CHAR, OTC:OIGLF) shares were up close to 10% on Monday, after the firm announced it had completed a significant financing package for its investment in the Zen and Bergriver wind generation projects in South Africa.
The two projects, with a combined export capacity of 190MW, have reached financial close and are expected to begin construction imminently, with commissioning scheduled for mid-2027.
Chariot holds its interests through Chariot Generation and Trading Pty Limited, a newly incorporated subsidiary that owns a 24% stake in each project. The projects are led by Acciona Energia, which holds 51%, alongside H1 Holdings with 25%.
Chariot noted its share has been fully financed at the subsidiary level through a combination of project finance debt, third party equity and mezzanine funding, with no dilution at the parent company level.
Adonis Pouroulis, chief executive officer of Chariot, said: “Reaching financial close on these Zen and Bergriver assets is a key development milestone and we are very pleased to be working alongside Acciona Energía and H1 as we play a part in building essential infrastructure, contributing to diversifying the energy mix and delivering clean, reliable power across South African industries.”
He added that the transaction creates future revenues from both power generation and electricity trading.
The electricity generated will be sold under a 20-year power purchase agreement through Etana Energy, in which Chariot Generation and Trading holds a 34% effective economic interest.
In London, Chariot shares were up 9.54% changing hands at 1.57p each.