5th Sep 2014 06:54
LONDON (Alliance News) - Rame Energy PLC Friday said it has agreed a GBP300,000 unsecured loan deal with Amati Global Investors Ltd, following on from the placing the group announced last week in which it raised GBP750,000.
The new five-year loan was agreed with Amati in its capacity as the manager of the Amati VCT PLC and Amati VCT 2 PLC funds. The loan has been provided with an interest rate of 8% per annum for the first 12 months, with the rate then rising to 25% for the remainder of the duration.
It comes in addition to the GBP750,000 raised by the company last week through the placement of 4.8 million shares.
The funding completes the deal Rame has put in place to back the development of its next four wind energy projects, totalling up to 118 Megawatts, under the terms of a framework agreed in June with Santander Investment Chile Limitada, the Chilean subsidiary of Banco Santander SA. That deal involves USD69 million of equity financing for Rame's next four wind projects in Chile.
"This loan is intended as a short term bridge to allow Rame to bring forward the point at which Santander buys-in to the project while giving us the financial flexibility to advance other opportunities such as our off-grid wind development at the Cerro Bayo mine.
By Sam Unsted; [email protected]; @SamUAtAlliance
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