Renergen has secured agreements for R14.2 billion of debt funding for Phase 2 of its Virginia Gas Project, the first project of its kind in South Africa.
The company said in a JSE regulatory note it had received approval from the US’s International Development Finance Corporation for $500 million (R9.5 billion) senior debt funding.
Renergen said the funding was subject to completion of a Congressional notification period, and a further $250m debt facility from Standard Bank of South Africa, for the construction of Phase 2 of the project.
The loans were also subject to the raising of sufficient equity funding by way of a Nasdaq IPO or other initiatives.
CEO Stefano Marani said in a statement: "Having achieved this major milestone bears testament to the quality of the Virginia Gas Project and the impact it can have both locally and globally.”
He said many months of hard work were starting to lay the foundations for the Phase 2 plant.
Renergen has commenced production of liquid natural gas and liquid helium from its Phase 1 plant, but on completion of the much larger Phase 2 project, its facilities will be much bigger, positioning the company to be able to deliver a substantial amount of energy to the South African economy and transform the country into one of the biggest helium producers in the world.
BUSINESS REPORT