Gresham House's Glassenbury site, which it acquired from VLC in 2019. Image: Gresham House.
Gresham House Energy Storage Fund has raised approximately £15 million by issuing a mix of short and medium-term secured power bonds.
The majority of the proceeds from these power bonds are to go towards acquiring an operating asset that Gresham House said was in the final stages of due diligence. An agreement on this asset is expected to be concluded during Q4 2020.
This is its latest acquisition, following on from the announcement of the company buying the development rights for two 50MW projects from Arenko in September. Prior to this, it acquired Arenko's 41MW Bloxwich battery in a £20.1 million transaction.
It unveiled its plans to raise the £15 million using power bonds in July 2020, with the bonds to provide Gresham House with flexible fixed rate financing terms with low arrangement, legal and other ancillary fees compared to a typical revolving credit facility or project finance, it said.
Gresham House intends to refinance the short-term power bonds, which represent an aggregate amount of £7 million, within the next 12 months. The offer period for the power bonds will be open until July 2021 to assist with the acquisition of further battery storage projects among other things, the company said.