Try our mobile app

US$500 Million Debt Retainer Letter Signed for Phase 2 Operations at Virginia Gas Project

Published: 2022-06-06 09:30:36 ET
<<<  go to JSE:REN company page
RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
A2X Share code: REN
ISIN: ZAE000202610
LEI: 378900B1512179F35A69
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)


US$500 MILLION DEBT RETAINER LETTER SIGNED FOR PHASE 2 OPERATIONS AT
VIRGINIA GAS PROJECT



Renergen is pleased to announce it has signed a Retainer Letter with the US International
Development Finance Corporation (“DFC”), to evaluate making a loan of up to US$500 million to
finance the development of Phase 2 of helium and natural gas operations at the Virginia Gas
Project (“Virginia).
DFC, which provided US$40 million for Phase 1 of operations, has conducted a preliminary
screening of the proposal for Phase 2 financing. Renergen and DFC will now commence further
analysis on the project, including potential on-site diligence following commissioning of the Phase
1 plant.
In addition to the DFC, Renergen has also received multiple Letters of Intent (“LOI”) to co-lend
alongside the DFC for Phase 2 operations from additional lenders, with a cumulative value of
over US$700 million in senior debt, which will exceed the remaining debt requirement.
The lenders are currently in the process of reviewing all materials in the data room and will be
conducting an onsite inspection of Phase 1 operations, as part of the due diligence for the debt
funding of Phase 2.
“We find ourselves in a very strong position as we embark on turning on the Virginia Gas Project
plant in the coming weeks. The Company has grown significantly in size and scale and
importantly, now has the ability to sculpt terms to suit our financing requirement. We are in the
process of optimising Phase 2 operations as part of the ongoing due diligence process and are
aiming to achieve a target of up to 65% debt funding, the balance equity, on the Phase 2 project
capital amount. The debt amount available to the Company will significantly reduce the amount
of equity needed while ensuring sufficient head room to meet financial covenants,” said Stefano
Marani, CEO.
Johannesburg
6 June 2022
Authorised by: Stefano Marani
Chief Executive Officer

Designated Advisor
PSG Capital
For Australian Investors & Media, contact Citadel-MAGNUS - Cameron Gilenko, 0466 984 953

This announcement contains images which can be found in the PDF version on www.renergen.co.za