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Energy firm to expand with fresh €15m funding facility

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Stock photo: Getty Images

Stock photo: Getty Images

Getty Images/Blend Images

Stock photo: Getty Images

AIM-listed energy saving group eEnergy has secured a €15m funding facility to help it expand operations in Ireland.

The company floated on the AIM earlier this year following a reverse takeover by Irish-founded group Elight of an existing AIM entity. Its clients include a number of schools here as well as companies such as Dalata and Ires Reit.

The group's Elight unit installs and manages energy efficient LED lighting for clients. It pays the upfront costs of the installation, with clients then paying a fixed monthly service fee.

The aim is that the energy savings generated by clients are greater than the service fee, helping them to free up cash flow.

Swiss investment firm SUSI Partners has provided a funding facility of up to €15m via its Energy Efficiency Fund II.

The facility allows SUSI to purchase future receivables from new lighting projects in Ireland across the education sector, public bodies and commercial clients. The facility will cover new projects installed for the next three years, or until the facility has been fully utilised.

"This new funding structure provides the group with a significantly enhanced competitive advantage, relative to the previous funding arrangements," said eEnergy. "The facility provides the group's Irish business with greater flexibility to deploy capital, extend the length of contracts offered to customers and improves the economics for the group."

The company will have control over the implementation and management of contracts and retain an economic interest over the life of each contract, thereby improving returns, it said.

eEnergy also said it's working with SUSI to develop the agreement into a longer-term funding partnership beyond the committed facility size, and eyeing the funding of projects in the UK.

Harry Sinclair, the chief executive of eEnergy, said the facility will underpin the company's proposition in Ireland.

"The funding will allow us to grow revenues as we take on significantly more projects over the next three years to meet the increasing demand from schools and businesses," he said.

"Post Covid-19, organisations are focused more than ever on reducing operating costs and if they can do this while reducing their carbon footprint, without the need for capital investment, it makes our offer even more compelling," he added. 

Irish Independent