New FCP ethanol plant in Grimsby gets financial backing
Investment company Future Capital Partners (FCP) has secured both senior debt and government underwriting for a proposed ethanol plant in Grimsby, UK.
The Belgian Export Credit Agency, the Office National De Ducroire (ONDD), has underwritten the senior debt for its £210 million (€259.5 million) bioethanol project. In addition FCP has also confirmed that a major senior lender will be supporting the debt both by participating and being the mandated lead arranger in raising the remaining senior debt.
‘Securing senior debt finance and the involvement of the ONDD is a major development for the project financing. Having completed thorough due diligence and approved every element of the project’s business model, their backing will be the spur for other institutions to join in. We expect to be able confirm the full financial raise shortly,’ says FCP CEO Tim Levy.
The development paves the way for completion of the financial raise for the construction of the industrial-sized bioethanol plant. Construction of the site will provide 750 jobs for two years and 70 permanent jobs once the plant is up and running. The lender has agreed to provide £25 million debt finance, while actively working to secure the outstanding amount from other European institutions.
‘The last few years have been one of the toughest fundraising environments in living memory, but with the key financing component in place the starting line for the build is now firmly in sight,’ adds Levy.
FCP is aiming to raise the final £85 million of financing for the project from sophisticated and high net worth investors.