Tlou Energy said the funds are planned to be used to finance construction of transmission line infrastructure to connect the Lesedi project to the Botswana Power Corporation power grid
Tlou Energy Limited has signed a 50 million Botswana pula ($5 million) convertible loan note with Botswana Public Officers Pension Fund (BPOPF) and has also agreed terms for an equity investment by BPOPF.
The London-listed power generation company, which is developing clean energy solutions in the southern African country and its neighbours, said the funds are planned to be used to finance construction of transmission line infrastructure to connect the Lesedi project to the Botswana Power Corporation power grid.
It also plans to fund the installation of generation assets and ancillary costs to facilitate power generation and sale of electricity.
The note has a maturity of five years and pays an annual interest rate of 7.75%.
It can be converted to ordinary shares on exercise of the conversion option by Botswana Public Officers Pension Fund at a 10% discount to the weighted average traded price of the company’s shares on the highest average volume exchange of the BSE/ASX/AIM over the 90 trading days prior to the maturity date.
The equity investment is expected to be made after July 1, 2022 and is conditional upon legal agreements, Tlou said.
Shares at 1311 GMT were up 0.10 pence, or 3.4%, at 3.05 pence.
With funds now in place along with required approvals and agreements to commercialise our gas we look forward to pushing on with development, said Tlou’s managing director, Tony Gilby.
Botswana Public Officers Pension Fund chief executive Moemedi Malindah added: Tlou Energy is building vital assets and infrastructure for Botswana. We are committed to long-term support of the project and look forward to its continued success.