Atlantis sets up bid to raise up to £5 million
- Business & Finance
Edinburgh-based tidal energy developer Atlantis Resources has launched a bond offer to raise funds to accelerate the development of its renewable energy projects.
The bond offer, expected to close in the first quarter of 2018, seeks to raise a minimum of £2 million and a maximum of £5 million through the Abundance Investment platform.
The proposed five-year bond matures in 2023 and has a coupon of 8% which is payable semi-annually, Atlantis said.
The proceeds of the issue will be used to progress and accelerate the development of the best opportunities in the Atlantis project pipeline, including the recently announced Uskmouth power station conversion, and the Wyre tidal gateway project.
Also, the funding will serve to repay some more expensive debt, and to provide general working capital for the company, Atlantis informed.
Tim Cornelius, CEO of Atlantis Resources, said: “As we embark on our transformational deal with SIMEC and the GFG Alliance to create a global, diversified renewable energy platform, this bond offer represents a chance for ordinary investors to help Atlantis to grow and share in our future financial success.
“These bonds will help us achieve our ambition of becoming one of the largest and most diversified renewable energy companies on the London Stock Exchange.”
Atlantis said the issuing entity is its newly-incorporated, wholly owned UK based subsidiary. Also, the company added that the bonds, which are unsecured, will benefit from a parent company guarantee from Atlantis.
The bonds will otherwise have the same terms as the £5 million 8% bonds due 2022 issued via the Abundance platform in July 2017, Atlantis noted.