Gresham House’s GRID powers up for growth following £380m facility

One of the UK’s market leaders in battery storage is set to significantly grow its pipeline after securing a £380 million bespoke funding package with support from NatWest.

Launched in 2018, Gresham House Energy Storage Fund plc (GRID) is one of only two publicly listed funds devoted to investing in utility-scale operational battery energy storage systems (BESS).

Through this facility, GRID helps to support the expansion of the UK’s storage network – essential to driving uptake of renewable energy sources and facilitating the UK’s transition to a low carbon economy.

GRID secured the funding to enable the continued growth of its portfolio. This includes plans for seven newly announced BESS projects due to be completed in 2022. Agreed over a five-year period, it comprises a £150 million capex term loan, £30 million working capital facility and £200 million uncommitted accordion. Part of the funds will also be used to repay a maturing bond.

Ben Guest, GRID Fund Manager and Head of the Gresham House New Energy division said: “Introducing a modest amount of cost-effective leverage to the portfolio has been an ambition since IPO and we’re delighted with the successful completion of this transaction, the terms achieved and the quality of the institutions that have taken part.

“We recently set out ambitious plans to significantly increase the size of our portfolio over the next two years, given the UK’s need to increase battery storage capacity tenfold by the middle of this decade. This facility will provide us with the financial headroom to achieve our growth plans.”

Gresham House is an LSE-quoted specialist alternative asset management group, dedicated to sustainable investments across a range of strategies, with expertise in forestry, housing, sustainable infrastructure, renewable energy and battery storage, public and private equity.

Jacob Lloyd, Energy Director, Specialist Asset Finance at NatWest said: “Due to the intermittent nature of wind and solar output, battery energy storage systems are key to the decarbonisation of the UK’s energy grid. As the proportion of energy that comes from renewable sources grows, so does the importance of storage. This makes the work that GRID and the team at Gresham House do central to the net zero transition, and NatWest are delighted to have supported them in this. Sustainability is at the heart of NatWest’s purpose, and we’re committed to providing the bespoke funding and support required to help UK businesses go greener.”

Advisory support and legal counsel provided by Jefferies and Latham & Watkins. Additional funding provided by Santander, Lloyds Bank and Commonwealth Bank of Australia.