Business
£75m Finance Framework Agreement: Petroline Energy
£75m Finance Framework Agreement: Petroline Energy.
About this update from Cindrigo Holdings Limited
[{"type":"text","content":"\n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.\n \n \n \n \n \n 21 March 2023\n \n \n \n \n \n Cindrigo Holdings Limited\n \n \n ('Cindrigo' or the 'Company')\n \n \n \n \n \n Cindrigo signs £75 Million Finance Framework Agreement with\n \n \n Abu Dhabi's Petroline Energy\n \n \n \n \n \n \n \n Cindrigo (LSE:CINH) is pleased to announce that, as part of its ongoing expansion strategy, it has entered into\n a Framework Agreement (the \"Agreement\") with\n Petroline Energy LLC\n , an Abu Dhabi based energy company\n (\"Petroline\")\n for the potential financing of up to £75 million in to Cindrigo Holding's Limited to be used for Cindrigo's development and construction of its geothermal projects.\n \n \n \n \n \n The first phase for the progression of the Cindrigo's 20 MW project on the Slatina 3 geothermal license\n in Croatia\n is a targeted £23 million investment in a 10-year convertible note at 6.5% per annum interest convertible at a 15% discount to the trading price, capped at 70 pence per share.\n \n \n \n \n \n Cindrigo and Petroline aim to develop further geothermal power plants in Croatia, the Pannonian Basin and potentially at other suitable locations. The Agreement sets out a process for due diligence to ensure an efficient review and deployment of financing for new projects, where Petroline will have a first right up to £75 million to make such required investments.\n \n \n Petroline are in discussion to form a consortium for its potential investment alongside other potential clean energy investors in the Middle East and other jurisdictions.\n \n \n \n \n \n Under the\n Agreement, Petroline will be entitled to appoint one member to the Board of Directors of Cindrigo.\n \n \n \n \n \n The contract is conditional on the completion of satisfactory due diligence by Petroline as to the representation of Cindrigo. \n \n \n \n \n \n Lars Guldstrand, CEO of Cindrigo, said\n : \"Unlocking the huge potential of geothermal power in Europe requires the coordination of critical expertise and the resolve of significant financial investment. We are very grateful for the confidence an established energy partner like Petroline has exhibited in Cindrigo. We look forward to str...