{"id":12527,"date":"2024-11-22T00:52:13","date_gmt":"2024-11-22T00:52:13","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/11\/22\/altech-batteries-ltdcerenergy-battery-project-funding-update\/"},"modified":"2024-11-22T00:52:13","modified_gmt":"2024-11-22T00:52:13","slug":"altech-batteries-ltdcerenergy-battery-project-funding-update","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/11\/22\/altech-batteries-ltdcerenergy-battery-project-funding-update\/","title":{"rendered":"Altech Batteries LtdCERENERGY Battery Project Funding Update"},"content":{"rendered":"<\/p>\n
Perth, Australia (ABN Newswire) \u2013 Altech Batteries Limited (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) is pleased to announce an update on funding of the CERENERGY(R) sodium-chloride solid-state battery project in Saxony, Germany. <\/p>\n

Highlights <\/p>\n

\u2013 Financing plan and target structure in place <\/p>\n

\u2013 Funding investment teaser documents and data room established <\/p>\n

\u2013 Reach out to 10 commercial banks and 2 venture debt funds \u2013 all positive interests <\/p>\n

\u2013 Shortlisting potential lead bank <\/p>\n

\u2013 Equity Funding \u2013 potential sale of minority interest of the project to realise capital and strategic value <\/p>\n

\u2013 Discussions and draft term sheets shared with investors <\/p>\n

\u2013 Offtake agreement LOI signed with ZISP <\/p>\n

On 14 June 2024, the Company, through its Germany subsidiary Altech Batteries GmbH (\u2018ABG\u2019), announced the appointment of global big four professional services firm (\u2018funding adviser\u2019) to assist in securing finance for the construction of Altech\u2019s 120MWh CERENERGY(R) battery manufacturing plant in Germany. The project\u2019s financing strategy is structured across three key areas: debt, equity, and grants. <\/p>\n

These sources will cover not only the capital expenditures but also financing costs, working capital, debt service coverage, and an additional contingency for potential business interruptions, See Figure 1*. <\/p>\n

DEBT PROCESS <\/p>\n

A funding invitation document (investment teaser) has been finalised and distributed to various financial institutions for debt funding in the project. The Group has engaged ten commercial banks and two venture debt funds in a first market round, receiving predominantly positive initial feedback. Several of these institutions have expressed strong interest in participating in the financing. The Group is now in the process of shortlisting potential lenders to identify the most suitable financial partners for the project. To support a thorough due diligence process, a secure data room has been set up, providing detailed project information to interested financiers and ensuring full transparency. The DFS financial model has been adjusted to stress-test various funding scenarios tailored to the lending institutions ABG has engaged with. Further steps involve determining the most suitable banks to form a syndicate and appointing a lead bank to guide the lending process. This syndicate will play a crucial role in structuring the financing arrangement to meet the project\u2019s requirements. <\/p>\n

EQUITY FUNDING <\/p>\n

In addition to ongoing debt financing efforts, the Group has engaged several equity advisers to support the equity component of the project\u2019s funding package. As part of this strategy, the Altech Group plans to divest a minority interest in the project to one or two strategic investors. This partial divestment aims to attract investors who can bring not only capital, but also strategic value to the project, aligning with the CERENERGY(R) project\u2019s long-term growth and sustainability objectives. <\/p>\n

The Group is specifically targeting large utility groups, data centre operators, investment funds and corporations that are heavily involved in the green energy transition. These entities are seen as ideal partners due to their strong alignment with the project\u2019s focus on sustainable energy solutions, as well as their capacity to provide substantial financial backing. <\/p>\n

To date, significant progress has been made in these equity discussions. Several Non-Disclosure Agreements (NDAs) have been signed, allowing for deeper engagement with prospective investors. Altech has also circulated draft term sheets to a number of interested parties, outlining the proposed terms and conditions for investment. These documents serve as a starting point for negotiations, paving the way for more detailed discussions regarding the potential equity stake and partnership structure. <\/p>\n

The strategic decision to divest a portion of the project is aimed at reducing the overall financial burden on the Company while bringing in experienced partners who can contribute to the project\u2019s success. By securing both the equity and debt components, the Company aims to finalise the full financing package, ensuring the timely construction and commissioning of the CERENERGY(R) battery plant. The next steps will focus on advancing these discussions and converting interest into formal commitments, which are crucial for moving forward with the project. <\/p>\n

OFFTAKE ARRANGEMENTS <\/p>\n

On 13 September 24, Altech announced the execution of an Offtake Letter of Intent between Zweckverband Industriepark Schwarze Pumpe (ZISP) and Altech Batteries GmbH. Under this Offtake Letter of Intent (LOI), ZISP will purchase 30 MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production. The price of these batteries has been agreed and aligns with the sales price contained within Altech\u2019s Definitive Feasibility Study. The purchase of these batteries is subject to performance tests, battery specifications and the batteries meeting customer requirements. This offtake LOI constitutes an important aspect of the financing process. This lays the foundation for additional offtake arrangements, which are currently in progress. These agreements are vital for advancing our financing and construction timelines for the CERENERGY(R) project. <\/p>\n

CEO and MD Mr Iggy Tan stated \u2018The funding stage of any project is the most complex and challenging process of any project. Securing a big four funding adviser with expertise and a global network is a major step in our financing efforts. Altech is advancing both debt and equity discussions, along with offtake agreements, to fully fund the CERENERGY(R) project. We are seeing strong interest, especially from European banks and potential equity partners\u2019. <\/p>\n

*To view tables and figures, please visit:
https:\/\/abnnewswire.net\/lnk\/PO741A78 <\/p>\n

To view MD Iggy Tan explain the Funding, please visit:
https:\/\/www.abnnewswire.net\/lnk\/23705649 <\/p>\n

About Altech Batteries Ltd: \u00a0<\/p>\n

Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS (\u2018Fraunhofer\u2019) to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. <\/p>\n

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech\u2019s land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market. <\/p>\n

Source:
Altech Batteries Ltd <\/p>\n

Contact:
Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com <\/p>\n

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com <\/p>\n<\/p>\n<\/div>\n

News Provided by ABN Newswire via QuoteMedia<\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Perth, Australia (ABN Newswire) \u2013 Altech Batteries Limited (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) is pleased to announce an update on funding of the CERENERGY(R) sodium-chloride solid-state battery project in Saxony, Germany. Highlights \u2013 Financing plan and target structure in place \u2013 Funding investment teaser documents and data room established \u2013 Reach out to 10 commercial banks and […]<\/p>\n","protected":false},"author":0,"featured_media":12528,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-12527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=12527"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12527\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/12528"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=12527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=12527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=12527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}