Atlantis plans £5M raise through upcoming bond offer

Atlantis’ AR1500 ahead of deployment at MeyGen (Photo: Atlantis Resources)

Edinburgh-based tidal energy developer Atlantis Resources is preparing to launch a bond offer at the end of June to raise funds for the growth of its business.

Atlantis said it is working with the provider of a regulated green peer-to-peer investment platform Abundance Investment to prepare an offer for bonds, targeting a £5 million raise.

The funds are expected to be used to progress and accelerate the development of the best opportunities in the Atlantis project pipeline, to repay some more expensive debt, and to provide general working capital for the Atlantis group.

Atlantis anticipates that the bonds will have a 5-year term and a coupon of 8%, payable semi-annually.

The issuing entity will be a wholly owned Atlantis’ UK-based subsidiary, and the bonds, which will be unsecured, will benefit from a parent company guarantee from Atlantis, the company said.

To remind, Atlantis raised a little over £4 million in an equity issuance completed in May 2017.