REG - Chariot Limited - Etana Secures US$100 million in Guarantee Finance

ChariotAnnouncement

04/12/2024 07:00

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RNS Number : 6828O  Chariot Limited  04 December 2024

4 December 2024

 

Chariot Limited

("Chariot", the "Company")

 

US$100 million in Guarantee Finance Secured

from British International Investment and GuarantCo for Etana Energy

 

Potentially unlocks up to US$500 million of renewable energy projects

 

Chariot Limited (AIM: CHAR), the Africa focused transitional energy group is
pleased to note the press release (link below) made by British International
Investment ("BII") and GuarantCo announcing a US$100 million guarantee finance
facility for Etana Energy (Pty) Limited ("Etana"), the South African
electricity trading platform which is owned by Chariot (49%) and H1 Holdings
(Pty) Limited (51%). Etana's business model is to provide competitive,
sustainable end-to-end power solutions through the connection of power
generation projects to commercial and industrial users by wheeling electricity
across South Africa's national grid.

 

·      BII and GuarantCo will each provide US$50 million of default
guarantee finance on behalf of Etana in South Africa's largest "energy
wheeling framework" transaction

 

·      Innovative deal designed to guarantee customer demand to enable
new renewable power by providing developers with revenue certainty needed to
break ground on new projects

 

·      US$100 million in guarantee financing has the potential to unlock
an estimated US$500 million of new renewable developments, equating to a total
generation capacity of circa 500MW from wind and solar projects

 

Adonis Pouroulis, CEO of Chariot, commented:

 

"Securing such substantial guarantees from these multi-national financing
institutions provides strong validation of Etana's business model. Being a
business that we co-founded, this endorses Chariot's strategy to diversify
into different types of assets and regions where we see rapid, scalable growth
under the umbrella of transitional energy in Africa. These guarantees are the
important first stage of the ongoing financing process required for the
bankability of Etana which is being carried out at the subsidiary level."

 

The full announcement from BII and GuarantCo can be found here:
https://www.bii.co.uk/en/news-insight/news/guarantco-and-british-international-investment-partner-to-unlock-us500-million-of-new-renewable-power-for-south-africa-with-landmark-100-million-etana-energy-deal/
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.bii.co.uk_en_news-2Dinsight_news_guarantco-2Dand-2Dbritish-2Dinternational-2Dinvestment-2Dpartner-2Dto-2Dunlock-2Dus500-2Dmillion-2Dof-2Dnew-2Drenewable-2Dpower-2Dfor-2Dsouth-2Dafrica-2Dwith-2Dlandmark-2D100-2Dmillion-2Detana-2Denergy-2Ddeal_&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=-tCInHCXUtFh9YYuIgkImtluVfPxFbmJhaUVxxRVjIU&m=z5RK02Y2M7dkE7cE1D2FGO1P7HXlEt5JsRK1ra0Y7gYVZKF8ZvdX0xKiBrujo6yC&s=dt_bOOwvhVTeDECvHUMdLx_cru87FltFt6IbFma1Xuc&e=)

About British International Investment

British International Investment is the UK's development finance institution
and impact investor. As a trusted investment partner to businesses in Africa,
Asia and the Caribbean, BII invests to create productive, sustainable and
inclusive economies in our markets. Between 2022-2026, at least 30 per cent of
BII's total new commitments by value will be in climate finance. BII is also a
founding member of the 2X Challenge (https://www.2xchallenge.org/) which has
raised over US$33.6 billion to empower women's economic development. The
company has investments in over 1,580 businesses across 65 countries and total
net assets of £8.5 billion. For more information visit: www.bii.co.uk
(http://www.bii.co.uk/)

 

 About GuarantCo

 GuarantCo mobilises private sector local currency investment for
 infrastructure projects and supports the development of financial markets in
 lower income countries across Africa and Asia. GuarantCo is part of the
 Private Infrastructure Development Group (PIDG) and is funded by the
 governments of the United Kingdom, Switzerland, Australia and Sweden, through
 the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France
 through a stand-by facility and Global Affairs Canada through a repayable
 facility. GuarantCo is rated AA- by Fitch and A1 by Moody's. Since 2005,
 GuarantCo has enabled USD 6.8 billion of total investment and USD 5.7 billion
 of private sector investment, giving 44.7 million people access to
 infrastructure and creating around 243,000 jobs. GuarantCo's activities are
 managed by GuarantCo Management Company which is part of Cardano Development.
 To find out more visit: www.guarantco.com (http://www.guarantco.com)

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)

 

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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