Australia-based diversified renewable energy company CBD Energy has secured a $25m revolving investment facility from a US-based financial institution.
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The finance will be used to ramp up work on its large pipeline of solar projects in Europe.
CBD Energy plans to start work on 3MW of ready-to-go rooftop projects in Italy this year and will initiate work to support ongoing development work in Europe of up to 5MW per month.
CBD Energy managing director Gerry McGowan said this is an important milestone for the company.
"International expansion to position CBD as a global solar developer is a key component of our long term growth strategy and builds on the experience gained in the delivery of our 8MW Thai project delivered late last year," said McGowan.
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By GlobalData" With this financing in place, we can quickly reach critical efficient scale in Europe, where demand for solar projects is robust and off-take economics are codified and tested."
"This funding facility gives CBD the ability to efficiently build on its existing base in a market that is expected to continue to represent more than half of global installations this year and next.
The company said the facility will offer scope to utilise the higher-margin build-operate-transfer model.
CBD Energy said the financing facility can support more than A$35m ($35.1m) revenue per quarter and it will also allow the company to focus on projects in its current pipeline with a potential net contribution margins above 10%.
Chardan Capital Markets was the placement agent for the credit facility.
