Gresham House Energy Storage Fund is aiming to raise an initial £15m to buy more grid scale battery storage.
The fund has an operational storage portfolio of 215MW with a further 140MW expected to come on line later this year (details here).
It aims to use the initial series of ‘Grid Power Bonds’, which pay an annual fixed rate of 5 per cent over a five-year term, to acquire an operating asset “which is at an advanced stage of due diligence”, per the market announcement.
The fund aims to launch a series of such bonds, which will be redeemable by the issuer after two years with no penalty. It may also use proceeds to fund other buys and to refinance existing projects.
Paying 5 per cent a year and with low fees is a good rate compared to revolving credit or project finance, the fund argues.
Gresham House doesn’t plan to use the bonds to borrow more than £40m in aggregate.