REG - Cindrigo Hldgs Ltd - £75m Finance Framework Agreement: Petroline Energy

Cindrigo HoldingsAnnouncement

21/03/2023 18:00

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RNS Number : 7723T  Cindrigo Holdings Limited  21 March 2023

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 21 March 2023

 

Cindrigo Holdings Limited

('Cindrigo' or the 'Company')

 

Cindrigo signs £75 Million Finance Framework Agreement with

Abu Dhabi's Petroline Energy

 

Cindrigo (LSE:CINH) is pleased to announce that, as part of its ongoing
expansion strategy, it has entered into a Framework Agreement (the
"Agreement") with Petroline Energy LLC, an Abu Dhabi based energy company
("Petroline") for the potential financing of up to £75 million in to Cindrigo
Holding's Limited to be used for Cindrigo's development and construction of
its geothermal projects.

 

The first phase for the progression of the Cindrigo's 20 MW project on the
Slatina 3 geothermal license in Croatia is a targeted £23 million investment
in a 10-year convertible note at 6.5% per annum interest convertible at a 15%
discount to the trading price, capped at 70 pence per share.

 

Cindrigo and Petroline aim to develop further geothermal power plants in
Croatia, the Pannonian Basin and potentially at other suitable locations. The
Agreement sets out a process for due diligence to ensure an efficient review
and deployment of financing for new projects, where Petroline will have a
first right up to £75 million to make such required investments.

Petroline are in discussion to form a consortium for its potential investment
alongside other potential clean energy investors in the Middle East and other
jurisdictions.

 

Under the Agreement, Petroline will be entitled to appoint one member to the
Board of Directors of Cindrigo.

 

The contract is conditional on the completion of satisfactory due diligence by
Petroline as to the representation of Cindrigo.

 

Lars Guldstrand, CEO of Cindrigo, said: "Unlocking the huge potential of
geothermal power in Europe requires the coordination of critical expertise and
the resolve of significant financial investment. We are very grateful for the
confidence an established energy partner like Petroline has exhibited in
Cindrigo. We look forward to strengthening the impact of their investment with
further expansion and strategic cooperation in the geothermal sector."

 

 **ENDS**

 

For more information please contact:

 Cindrigo Holdings Limited, Lars Guldstrand CEO                    +44 (0) 7408 861 667

 St Brides Partners Ltd (PR), Catherine Leftley, Paul Dulieu       +44 (0) 20 7236 1177

 

Notes:

Petroline Energy LLC is an UAE based shipping and energy company, established
in 1997, active in the Shipping, Oil & Gas and energy industry including
trading. Petroline provide unbiased high-level services on the commodity
trading market space with strong expertise across energy, agriculture and
metals.

Petroline offers a comprehensive range of services that meet the commercial,
technical, safety and operational needs of its clients - ship charterers,
commodity movers, oil & energy companies and ship owners. We strive to be
on the forefront of technological change and emerging trends in order to
capitalize on, and connect to, new opportunities in modern energy solutions.

Cindrigo Group is an active clean baseload power developer engaged in the
renewable energy sector. Cindrigo is currently focussed on the successful
build of its 20 MW geothermal power plant located in Croatia. A number of
expansion projects are also underway, primarily in the Pannonian basin of
Central Europe and also select markets where Cindrigo has natural strategic
partners.

Cindrigo aims to have contracts in place for geothermal power plant projects
with up to 200 MW of contracted capacity within a year, up to 450 MW within
three years and 1000 MW by 2030.  The financing for each power plant project
will primarily by a structured project finance basis within special purpose
vehicles for each project.

 

Cindrigo's common shares are pending readmission to trading at London Stock
Exchange Main List ("LSE") with a Standard Listing.

 

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