Warehouses note development of new Avonmouth plant by Helios
Renewable energy developer Helius Energy is proposing to raise £6.2m in a placing, part of the proceeds of which is to be used towards the development of a £300m plant at Avonmouth.
The business plans to raise £5.2m through a firm placing and £1.06m in an open offer. Part of this is to be used to develop the Avonmouth scheme.
Helius has also agreed to capitalise outstanding debt of £500,000 with non-executive director Angus MacDonald by issuing new ordinary shares at 12p each.
Planning consent for the 100MW facility in Avonmouth was secured in March 2010. The project is set to create 450 jobs during the construction phase and 40 new full-time jobs once the plan is in operations.
Helius said that further jobs are to be created in relation to the maintenance and supply of the plant.
The process of securing funding for the project had “taken longer than anticipated” which it said was partially because of delays in the release of government announcements relating to legislation.
Helius added it was currently working with a club of banks and equity investors to project finance and fund the equity requirements of the project. It expects to achieve financial close in the first half of this year.
Adrian Bowles, chief executive of Helius Energy, said: “We are pleased to have secured this capital investment which clearly demonstrates that investors continue to have confidence in Helius’ ability to deliver high quality projects.”
Source: Insider Media Ltd