ZEN ENERGY SUCCESSFULLY COMPLETES $160M CORPORATE DEBT RAISING

 

22 March 2024

Australia’s first 1.5°C energy company has successfully completed its debt capital raising. The outcome confirms increasing interest and confidence among high net worth and institutional investors in ZEN’s business strategy.

ZEN’s ambitious growth plans have been supported by organisations including private debt investment manager Longreach Credit Investors, ethical superannuation fund Future Group, ASX listed financial service provider Income Asset Management (IAM), leading WA property investment firm Hesperia, Samuel Terry Asset Management and impact investors.

ZEN closed Tranche A of the capital program at $54M in September 2023. The successful conclusion of the Tranche B capital raising closed the overall program at $160M. This comes just after ZEN’s announcement that it has reached financial close on its 100% owned energy storage asset, a 111-megawatt, 291 megawatt-hour battery located at Templers, 60km north of Adelaide.

A third of the funds raised were from existing investors, shareholders, and employees, demonstrating the depth of support for ZEN’s business model.

Investor confidence in ZEN enables the business to continue to pursue its ambitious growth plans, which centre around enabling large energy users to reduce their carbon footprint in an efficient manner.

Quotes attributable to ZEN’s CEO, Anthony Garnaut:
“We welcome the latest group of institutional and impact investors, including Longreach and Future Group, into ZEN’s ecosystem of partners with aligned sustainability goals.

“Meeting our capital raising goal means we can continue to scale our business model, including by taking the next step in building out our portfolio of renewable energy and storage assets.

“With this injection of capital, ZEN will also be able to scale our existing and attract new sustainability driven customers, accelerating their journey to the zero carbon future.”

Quotes attributable to Longreach Credit Investors Chief Commercial Officer, Alex Nisbet: “Longreach Credit Investors is pleased to have supported ZEN in this debt raising. ZEN is well positioned to be a key player in driving the renewable energy transition in Australia and is another example of the high-quality Australian businesses and management teams that we seek to partner with.”

Quotes attributable to Future Group Executive Director Investments, Sharon Davis:
“Future Group injected $30M of capital into ZEN Energy, enabling the business to retain 100 per cent ownership of its first major asset, the 291-megawatt-hour Templers Battery in regional South Australia.

“Using superannuation’s $3.4 trillion can unlock climate solutions and investments. Zen Energy’s ESG-driven business reflects the values of Future Group’s, leading the investment movement to advocate for a future worth retiring into.”

Quotes attributable to Income Asset Management (IAM) Executive Director – Debt Capital, Tim Smith:
“IAM is a proud supporter of ZEN’s ambitious renewable energy strategy and have been delighted to be a joint lead manager on this transaction. We believe it is a significant milestone in the context of Australia’s rapidly evolving private credit market. This transaction is a testament to the ZEN management team and a large step toward achieving its long-term aspiration of becoming an investment grade issuer.”

Media contact:

Paul Sheridan
0410 516 656
paul.sheridan@zenenergy.com.au

 

SOUTH AUSTRALIA’S 2ND BIGGEST BATTERY STORAGE TO BOOST RELIABILITY

 

19 March 2024

Construction of South Australia’s second largest energy storage project will boost reliability of electricity supply as the state leads the way nationally to become powered by 100 per cent renewable energy by 2027.

Local business success story ZEN Energy today announced with the South Australian Government that construction of the 111-Megawatt, 291 Megawatt-hour battery will commence at Templers, 60km north of Adelaide, following a final investment decision, or financial ‘lock up’ milestone.

ZEN and private partner investors are financing the project. Local employment will be a priority during construction, with more than 180 jobs being created. The battery will be operational in 2025.
The Templers battery will also add significant stability to the electricity grid as South Australia builds toward becoming a renewable energy superpower through its investments in green manufacturing.

ZEN has quickly grown since it began in 2004 to become a leading national renewable energy retailer, supplying the SA Government, Bunnings, and CSIRO, as well as a network of councils in the eastern states.

Other key points:

  • ZEN’s ability to construct the battery has been enabled through the South Australian Government’s commitment to a long-term energy contract with the company.
  • ZEN has brought together an extensive ecosystem of sustainability driven partners – which includes Stonepeak, a leading alternative investment firm specialising in infrastructure and real assets, through its portfolio company Peak Energy and French financial institution Natixis CIB. ZEN was advised by corporate advisory firm Azure Capital.
  • Stonepeak’s funding through an innovative structure has facilitated ZEN’s ownership of the Templers Battery, with opportunities to extend the support as ZEN delivers against its significant pipeline of renewable assets.
  • Ethical superannuation fund Future Super recently invested $30 million in ZEN, which is integral to projects like the Templers battery.
  • Consolidated Power Projects Australia will be completing the engineering design and installation. Sungrow Power Supply Co. and Shanxi Electric Power will be providing relevant equipment for the construction of the Templers battery.
  • ElectraNet, the owner and operator of South Australia’s high voltage transmission network will build and maintain the dedicated connection to the Templers battery

Quotes attributable to the Minister for Energy and Mining, the Hon. Tom Koutsantonis MP:  “South Australia led the pack when we invested in the Hornsdale Power Reserve, and our state is now home to six grid-connected batteries with a total capacity of more than 500MW.

“These investments are a big vote of confidence in our state’s ambitious plan to get to net zero emissions in energy production by 2027, and to help the world along the pathway to decarbonisation.”

“Like South Australia, ZEN was an early mover in the renewable energy space. It’s great to see a home-grown success story joining us in the journey to a decarbonised economy.”

Quotes attributable to ZEN Energy CEO, Anthony Garnaut:

“Realising the final investment decision for the Templers battery is a key milestone in ZEN’s significant growth and marks our first 100 per cent owned major asset, in the state where we started.”

“The South Australian Government, through committing to a long-term contract with a renewable retailer has enabled this significant inve