Perth based clean energy developer Frontier Energy announced on Monday that it had signed a syndicated loan agreement for up to $A280 million that will fill out the coffers to fully fund the first stage of its Waroona Renewable Energy Project in Western Australia.
Frontier announced that it had executed a syndicated facility agreement for project finance debt facilities of up to $A280 million provided by a syndicate of international lenders led by financial services giants Natixis CIB and Sumitomo Mitsui Banking Corporation.
The debt facility was credit-approved earlier in the year and included a construction facility of up to approximately $250 million, describing it as “a complete funding package that will enable the timely development” of Waroona stage one.”
While financial close of the agreement is subject to certain conditions, Frontier expects that decision to be reached in the coming weeks, followed by the first drawdown of funds in Q1’2027.
When financial close is taken, the new debt facilities, along with the proceeds of a $110 million placement completed earlier this year in June, are expected to fully fund the first stage of Frontier’s Waroona Renewable Energy Project through to first generation in 2028.
The debt facilities include a construction and term facility of up to approximately $A250 million, along with a bank guarantee of approximately $A13 million and a debt service reserve facility of approximately $A17 million.
Located 120 kilometres south of Perth, Waroona is a hybrid solar and battery storage project consisting of a 132-megawatt (MW) solar facility and an 81.5 MW battery energy storage system (BESS).
“Execution of the SFA is a major milestone for Frontier and comes as site works at stage one are ramping up,” said Jamie Cullen, Frontier executive chairman.
“We would like to thank Azure Capital, the Company’s debt finance advisor, as well as the syndicated lending consortium that has committed the funding for developing Stage One, a major renewable energy project for Western Australia.
“With the SFA executed and financial close on track to occur during November, construction activities at our Waroona Project are ramping up, whilst we also continue to work through future expansion opportunities.”
The latest funding comes two months after Frontier confirmed that it had secured all major contracts to start work on the Waroona hybrid system, expected to be the largest solar and battery hybrid on Western Australia’s main grid.
Joshua S Hill
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.
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