Simic Atlantis share price soars on Uskmouth debt finance framework


Simec Atlantis has seen its share price soar in early trading after striking a financing deal with South Korea’s Hana Financial Investment (HFI) for the first phase of its Uskmouth energy to waste plant.

The arrangement gives HFI exclusivity to finance the first phase of the project, whereby Simec plans to convert 110MW of the old coal-fired plant to burn non-recyclable waste pellets called ‘sub-coal’.

The firm has recently completed successful large scale burn tests of the waste pellets by Mitsubishi Hitachi Power Systems.

The company announced last month it would split the conversion into two chunks in a bid to derisk it and start generating revenues earlier.

Simec hopes to get to financial close on the project early next year. If all goes to plan, the non-binding 6-month agreement would then be formalised, with HFI providing up to £170 million towards capital and development expenditure, operating costs, fees and interest. It would also provide an equity bridge loan throughout the construction phase.

However, the agreement is subject to HFI completing due diligence on Uskmouth and a number of other conditions.

“We are delighted to enter into this agreement with Hana and are looking forward to working closely with them to achieve financial close on our flagship project,” said Simec Atlantis CEO, Tim Cornelius.

“This agreement reflects the high level of international interest our world-leading conversion project has and we believe that this is a stepping stone to further conversion opportunities across Asia and indeed globally.”

Cornelius told The Energyst in June that its share price was “set for the mother of all corrections“. The HFI announcement means it has since quadrupled, though remains a fraction of its peak.


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