Simec Atlantis seeks to raise $12 million to fund project pipeline | RenewEconomy

Simec Atlantis seeks to raise $12 million to fund project pipeline

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Edinburgh-based SIMEC Atlantis announces launch of $12.7m bond it hopes will help fund its pipeline of tidal and waste-to-energy projects.

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Edinburgh-based global sustainable energy company SIMEC Atlantis announced on Tuesday the launch of a $12.7 million/£7 million bond which it hopes will help fund its pipeline of tidal and waste-to-energy projects.

SIMEC Atlantis Energy – the resulting company from Atlantis Resources’ acquisition of SIMEC Uskmouth Power in late-2017, subsequently bringing SIMEC Atlantis Energy under the larger umbrella of the GFG Alliance, an international group of businesses associated with businessman Sanjeev Gupta and the British Gupta family collectively.

Atlantis Resources itself was an Australian-founded marine turbine company dedicated to perfecting and launching its MeyGen tidal stream array – which is now in continued development in the Pentland Firth, Scotland.

The MeyGen project is currently generating energy using the company’s AR1500 (1.5 MW) marine turbine but announced earlier this year an expansion which will utilise the company’s 2 MW AR2000 turbines which was itself revealed in September 2018.

SIMEC Atlantis Energy’s announcement this week that it is launching a bond offer seeking to raise $12.7 million/£7 million serves as evidence of the company’s forward momentum.

The company hopes that the funds raised through the bond offer will be used to accelerate various projects in its pipeline, including the remaining development activities for the Uskmouth Power Station conversion project– which is being converted from coal power to generate electricity from 100% waste-derived energy pellets.

Additionally, funds will be used for consenting and engineering studies for the proposed Raz Blanchard tidal power project, and to provide general working capital to be used in the development of the Atlantis group’s business and project portfolio.

“As we create a global, diversified renewable energy platform, this bond offer represents a chance for investors to help Atlantis to grow and share in our future financial success,” sid Tim Cornelius, CEO, SIMEC Atlantis Energy Limited.

“The bonds will help us continue work on amazing and world leading projects such as the Uskmouth power station conversion. These bonds will help us towards our ambition of becoming one of the largest and most diversified renewable energy companies on the London Stock Exchange.”

The bond is being launched through Abundance Investment Limited, a UK-based provider of a regulated ethical peer-to-peer investment platform and will span five years with a coupon of 8%, payable semi-annually.

The new bonds will have substantially the same terms as the £5 million 8% bonds due in 2022 and the £5 million 8% bonds due in 2023 issued, respectively, via the Abundance platform in July 2017 and in 2018.

“At this time of great political upheaval and climate emergency, now is the time to turn words into actions,” said Bruce Davis, co-founder and joint Managing Director, Abundance.

“Atlantis is one of the most dynamic energy development companies in the world, so we’re proud to be backing it as it helps lead the UK to a Net Zero future.

“Abundance investors have been at the forefront of supporting the low-carbon transition and we expect our customers – drawn from ordinary people throughout the UK – to embrace this opportunity to build on the success of our two previous green bonds for Atlantis, with this third offer, our biggest for them so far.”

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