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Gresham House Energy Storage rakes in £150m

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Gresham House Energy Storage (GRID) has announced that its placing, which was announced 25 May 2022, has raised gross proceeds of £150 million. The proceeds, in conjunction with GRID’s available debt facilities, will allow it to fund the majority of its existing pipeline. GRID says that the placing was significantly oversubscribed and a scaling back exercise has been undertaken. 103,448,275 new ordinary shares will be issued as a result of the placing, bringing the total number of shares in issue to 541,290,353. It is expected that dealings in the new ordinary shares will commence at 8am on 31 May 2022.

Comments from John Leggate CBE, Chair of Gresham House Energy Storage

“Strong investor demand means that we can commit to further development of our pipeline to create even greater scale and diversification. Notwithstanding the substantial demand and level of oversubscription, we have opted to maintain appropriate capital discipline with a view to protecting our level of dividend cover and the potential for future NAV growth whilst maintaining our growth trajectory.”

Comments from Ben Guest, Fund Manager and Head of Gresham House New Energy

“We are delighted to have reached this milestone. The capital raised allows us to execute on the deployment of the majority of our Existing Pipeline of 747MW which will see us reach 1,597MW in operating capacity in due course. As always, I would like to thank our investors for their backing, both in supporting this fundraising as well as for approving the recently-proposed changes to our Investment Policy which, we anticipate, will unlock significant value for shareholders.”

[QD comment: We are pleased to see that GRID has successfully completed this fundraising, which gives it a meaningful increase in size at a time when significant investment is required in battery storage. This investment is crucial if we are to meet our climate change commitments and achieve better energy security as more energy generation moves to renewable sources, which are inherently more intermittent in nature than traditional thermal generation. However, we have long stated our view that these sort of capital raisings that open and close almost immediately, and only raise capital from institutions, discriminate against retail investors who are not given the opportunity to take part. Mechanisms are available to overcome this and we would like to have seen GRID offer this, and hope that this will be considered in the future.]

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