REG - Chariot Limited - Etana Energy Financing

ChariotAnnouncement

18/03/2025 07:00

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RNS Number : 0188B  Chariot Limited  18 March 2025

18 March 2025

 

Chariot Limited

("Chariot", the "Company")

 

US$75m Guarantee Financing and Equity Investment Secured for Etana Energy

 

South African electricity trading business now fully funded

 

Chariot Limited (AIM: CHAR), the Africa focused transitional energy group is
pleased to announce that Etana Energy (Pty) Limited ("Etana"), the South
African electricity trading platform, has secured a US$55million (R1billion)
guarantee finance facility alongside an equity investment of up to
US$20million (R372million) from Standard Bank and Norfund. Standard Bank is
the largest bank in Africa and Norfund is a Norwegian state investment fund
focused on developing countries.

 

Etana is owned by Chariot (49%) and H1 Holdings (Pty) Limited (51%) (the
"Ordinary Shareholders") and is focused on providing competitive, sustainable
end-to-end energy solutions through the connecting of power generation
projects to commercial and industrial users by wheeling electricity across
South Africa's national grid.

 

Transaction highlights:

 

·      US$55million of guarantee finance from Standard Bank on behalf of
Etana, in addition to the US$100million secured from British International
Investment and GuarantCo, previously announced on 4 December 2024, unlocks new
renewable projects by providing developers with the revenue certainty needed
to reach financial close and commence construction

 

·      Up to US$20million equity investment to support Etana's growth
and working capital requirements through to its first revenues

 

·      Standard Bank and Norfund, in return for the guarantee and equity
finance, are to be issued preference share capital in Etana which will give
them an effective economic interest of 10% and 20% respectively. The
preference share capital is redeemable at the option of the Ordinary
Shareholders

 

·      Funding package has enabled the first financial close of a solar
generation project, the Mulilo 75MW Du Plessis Dam, with further renewable
projects anticipated to close in the near term

 

Adonis Pouroulis, CEO of Chariot, commented:

 

"With this financing we welcome two further significant institutions, Standard
Bank and Norfund, into the Etana business, a company which we co-founded. This
transaction provides balance sheet support, combined with an equity investment
which will unlock further generation projects, fund rapid, scalable growth and
lead to material revenues from both Etana and potential future direct
participation in generation projects. This clearly endorses the value that we
see within the electricity trading platform which is looking to provide much
needed long term, cleaner and competitive energy across South Africa."

About Standard Bank

Standard Bank Group is the largest African bank by assets, operating in 20
African countries, four global financial centres and two offshore hubs.
Headquartered in Johannesburg, South Africa, it is listed on the Johannesburg
Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share
code SNB.

Standard Bank has a 162-year history in South Africa and started building a
franchise outside southern Africa in the early 1990s. Their strategic
position, which enables them to connect Africa to other select emerging
markets as well as pools of capital in developed markets, and their balanced
portfolio of businesses, provide significant opportunities for growth.

As at 30 June 2024, Standard Bank Group had 19.5 million clients, employed
nearly 51,000 people (including Liberty) and had almost 1,200 points of
representation and 5,500 ATMs on the African continent.

The group's largest shareholder is the Industrial and Commercial Bank of China
(ICBC), the world's largest bank, with a 19.4% shareholding. In addition,
Standard Bank Group and ICBC share a strategic partnership that facilitates
trade and deal flow between Africa, China and select emerging markets.

For further information, go to http://www.standardbank.com
(http://www.standardbank.com)

About Norfund

Norfund is the Norwegian Investment Fund for developing countries with a
mission to create jobs and improve lives by investing in businesses that drive
sustainable development. Owned and funded by the Norwegian
Government, Norfund is the Norwegian Government's most important tool for
strengthening the private sector in developing countries and reducing poverty.

Norfund's committed portfolio amounts to USD 3.6 billion, with investments
across Sub-Saharan Africa, South/Southeast Asia, and Latin America.
Additionally, Norfund manages the Norwegian Climate Investment Fund, which
focuses on reducing or avoiding greenhouse gas emissions by investing in
renewable energy in developing countries with large emissions from coal and
other fossil fuel production. For more details, please visit: www.norfund.no
(https://urldefense.proofpoint.com/v2/url?u=https-3A__protect.checkpoint.com_v2_-5F-5F-5Fhttp-3A_www.norfund.no-5F-5F-5F.YzJlOm5vcmZ1bmQ6YzpvOjVjNDRlMTg3MmRmNTlkNzQ3YTdlMjU2ZjU1ZjJiOWNhOjY6OWZlMToyNDNmYmMxOGI3OGQ2M2UwNTBkM2E5ZWFlYzBiMmU4ZGJkYzUyZDAzZTY4NTdlZDViZTAyNWE2MzMwNDkyNDhjOnA6VDpO&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=HeAHKFbwjqiGn71W2UJTK6IWyZU9ZPuDcJlx7dQPVJI&m=lagT4QtFp7b_wZ1gdNyj9JT4mVmwrb1c-Ea2iTcplHsHJGP53b7Z9AT5gDvoKHsz&s=l1XF3DDwoZln-TG7orIo0sGmVrJddgS0jzPb714k8p0&e=)

About Etana Energy

 

Etana Energy is a majority black-owned licenced electricity trader that
supplies electricity generated by renewable energy projects to businesses in
South Africa, using the national electricity grid. Etana's customers benefit
from certified low-carbon electricity at tariffs competitive with Eskom or
municipal supply, forward price certainty, flexible contracting terms and
qualifying B-BEEE expenditure. For more information, visit: www.etana.energy
(http://www.etana.energy)

 

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, as retained in the UK pursuant to S3 of the European
Union (Withdrawal) Act 2018.

 

Enquiries

 

 Chariot Limited                                              +44 (0)20 7318 0450

 Adonis Pouroulis, CEO

 Julian Maurice-Williams, CFO

 Cavendish Capital Markets Limited (Nomad and Joint Broker)   +44 (0)131 220 9778

 Derrick Lee, Adam Rae

 Stifel Nicolaus Europe Limited (Joint Broker)                +44 (0) 20 7710 7760

 Callum Stewart, Ashton Clanfield
 Celicourt Communications (Financial PR)                      +44 (0) 20 7770 6424

 Mark Antelme, Jimmy Lea

 

NOTES FOR EDITORS:

 

About Chariot

 

Chariot is an Africa focused transitional energy group with three business
streams, Transitional Gas, Transitional Power and Green Hydrogen.

 

Chariot Transitional Gas is focused on high value, low risk gas development
projects in Morocco, a fast-growing emerging economy, with a clear route to
early monetisation, delivery of free cashflow and material exploration upside.

 

Chariot Transitional Power is focused on providing competitive, sustainable
and reliable energy and water solutions across the continent through building,
generating and trading renewable power.

 

Chariot Green Hydrogen is partnering with TEH2 (80% owned by TotalEnergies,
20% by the EREN Group) and the Government of Mauritania on the potential
development of a 10GW green hydrogen project, Project Nour in Mauritania, and
are progressing pilot projects in Morocco.

 

The ordinary shares of Chariot Limited are admitted to trading on the AIM
under the symbol 'CHAR'.

 

https://chariotenergygroup.com (https://chariotenergygroup.com)

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