New Funding Agreements Solidify Mainstream Renewable Power’s Future Growth
In a significant development for the renewable energy sector, Aker Horizons ASA has finalized new funding arrangements for Mainstream Renewable Power, a decision that promises to bolster the company's growth and operational effectiveness. This strategic move, made in partnership with DNB ASA and co-shareholder Mitsui & Co., Ltd., is tailored to accelerate Mainstream's initiatives, allowing them to focus on their core markets that present the highest potential for value creation: South Africa, Australia, and the Philippines.
The funding will empower Mainstream to execute a refined strategy that is concentrated on delivering projects effectively while maintaining a lean operational structure. By optimizing capital efficiency and emphasizing solid project delivery, Mainstream aims to enhance its value proposition significantly. The fresh financial backing is anticipated to facilitate various projects already under consideration.
In 2023, Mainstream had secured an impressive corporate facility of up to USD 220 million through DNB, which was further fortified by its shareholders. Notably, Aker Horizons has committed to 58.4% of this maximum facility, amounting to USD 129 million. This financial support is structured as a shareholder loan, with disbursement planned in phases—an initial USD 75 million is slated for April 2025, followed by the remaining USD 53 million which will initially be accessed through an extended letter of credit, transitioning into shareholder loans by 2025 and 2026.
In addition to the aforementioned funding, there is an agreement for a shareholder loan facility of up to EUR 64 million, which will be pro-rata divided between Aker Horizons at 70% and Mitsui at 30%. Alongside this, Mainstream will have access to a corresponding letter of credit facility with DNB, also valued at EUR 64 million, further reflecting the commitment from Aker Horizons and Mitsui. The drawing from both facilities is set to continue until the end of 2026, contingent upon meeting specific milestones outlined within Mainstream's updated strategic framework.
Mainstream Renewable Power has carved out its niche as a leading entity in the global renewable energy sector, with comprehensive wind and solar assets spanning Europe, Latin America, Africa, and Asia-Pacific. The company's impressive track record includes the development of substantial gigawatt-scale renewable platforms, with a total of 6.6 GW of wind and solar generation assets already positioned for financial closure. With a project portfolio totaling 22.7 GW, Mainstream is well-placed to continue setting benchmarks in renewable energy development.
Aker Horizons is dedicated to the advancement of green energy solutions and sustainable industrial practices aimed at accelerating the journey towards a Net Zero world. As part of the larger Aker group, the company leverages its extensive experience in industrial and technological fields to promote environment-friendly initiatives globally. Mainstream Renewable Power, on the other hand, is recognized for its robust presence as a pure-play renewable energy firm, tapping into diverse energy sources to meet growing energy demands sustainably.
This partnership is a testament to the evolving landscape of renewable energy financing and the commitment of stakeholders to drive meaningful progress in addressing global energy challenges. With increasing focus on sustainable and scalable energy solutions, the latest funding arrangements signify a pivotal step forward for both Aker Horizons and Mainstream Renewable Power in their mission to lead the clean energy transition.
A Focused Strategy for Growth
The funding will empower Mainstream to execute a refined strategy that is concentrated on delivering projects effectively while maintaining a lean operational structure. By optimizing capital efficiency and emphasizing solid project delivery, Mainstream aims to enhance its value proposition significantly. The fresh financial backing is anticipated to facilitate various projects already under consideration.
In 2023, Mainstream had secured an impressive corporate facility of up to USD 220 million through DNB, which was further fortified by its shareholders. Notably, Aker Horizons has committed to 58.4% of this maximum facility, amounting to USD 129 million. This financial support is structured as a shareholder loan, with disbursement planned in phases—an initial USD 75 million is slated for April 2025, followed by the remaining USD 53 million which will initially be accessed through an extended letter of credit, transitioning into shareholder loans by 2025 and 2026.
Diverse Financial Strategies
In addition to the aforementioned funding, there is an agreement for a shareholder loan facility of up to EUR 64 million, which will be pro-rata divided between Aker Horizons at 70% and Mitsui at 30%. Alongside this, Mainstream will have access to a corresponding letter of credit facility with DNB, also valued at EUR 64 million, further reflecting the commitment from Aker Horizons and Mitsui. The drawing from both facilities is set to continue until the end of 2026, contingent upon meeting specific milestones outlined within Mainstream's updated strategic framework.
Impact on Renewable Energy Market
Mainstream Renewable Power has carved out its niche as a leading entity in the global renewable energy sector, with comprehensive wind and solar assets spanning Europe, Latin America, Africa, and Asia-Pacific. The company's impressive track record includes the development of substantial gigawatt-scale renewable platforms, with a total of 6.6 GW of wind and solar generation assets already positioned for financial closure. With a project portfolio totaling 22.7 GW, Mainstream is well-placed to continue setting benchmarks in renewable energy development.
About Aker Horizons and Mainstream Renewable Power
Aker Horizons is dedicated to the advancement of green energy solutions and sustainable industrial practices aimed at accelerating the journey towards a Net Zero world. As part of the larger Aker group, the company leverages its extensive experience in industrial and technological fields to promote environment-friendly initiatives globally. Mainstream Renewable Power, on the other hand, is recognized for its robust presence as a pure-play renewable energy firm, tapping into diverse energy sources to meet growing energy demands sustainably.
This partnership is a testament to the evolving landscape of renewable energy financing and the commitment of stakeholders to drive meaningful progress in addressing global energy challenges. With increasing focus on sustainable and scalable energy solutions, the latest funding arrangements signify a pivotal step forward for both Aker Horizons and Mainstream Renewable Power in their mission to lead the clean energy transition.
Topics Energy）
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