By Jaime Llinares Taboada
Shares in SIMEC Atlantis Energy Ltd. rose Friday after it said that it has entered into an exclusive debt financing agreement for up to 170 million pounds ($224.6 million) with a South Korean firm to fund the first phase of its Uskmouth conversion project in Wales.
Shares at 0703 GMT were up 2.75 pence, or 15%, at 20.50 pence.
The developer of sustainable energy projects said the lender is Hana Financial Investment Co. Ltd., and that the agreement binds both to a six-month exclusivity period.
The company said the GBP170 million would cover the capital and development expenditure, operating costs, fees and interest for the first phase of Uskmouth. The facility would also provide an equity bridge loan, it said.
"This agreement with Hana reflects the high level of international interest our world-leading conversion project has and we believe that this is a stepping stone to further conversion opportunities across Asia and indeed globally," Chief Executive Tim Cornelius said.
Uskmouth is an old coal power station located near Newport, Wales. SIMEC has plans to convert it so that it operates using plastic and biomass waste fuel pellets. The company said last month that it would phase the project into two stages, with the first phase comprising the conversion of 110 megawatts of generation capacity--half the total 220-megawatt plan.
Write to Jaime Llinares Taboada at firstname.lastname@example.org; @JaimeLlinaresT