Luminous Energy secures three year £5.5m development finance facility with Novuna Business Finance
Luminous Energy, a leading UK-based renewable energy and battery storage developer, has successfully signed a three year £5.5m development finance facility with Novuna Business Finance. This strategic financial arrangement will support the company's global development pipeline and wider corporate overheads as it transitions from a pure play developer to an independent power producer (IPP).
Luminous values the finance facility agreed with Novuna Business Finance for the optionality and flexibility it provides, making it a key component of the company's broader strategic funding arrangements.
To provide the facility for the development phase on a global scale, Novuna Business Finance has taken security over Luminous's UK distribution-connected solar development portfolio, which includes the recently energised Bracon Ash, a project for which Novuna has already provided senior debt funding.
Three notable aspects of the funding agreement include:
Global flexibility: The ability to use the funding across both development and overhead needs on a global basis – in Australia, US and Germany, and not only limited to the UK.
Repayment and redraw flexibility: The facility offers flexibility to repay and redraw funds over the term.
Facility adaptability: The facility offers flexibility with assets, requiring due diligence only when drawn against, up to a committed facility of £5.5m.
Guy Laverack, Chief Investment Officer, at Luminous Energy Group: “This facility represents a continuation of the excellent working relationship originally established through the senior debt financing of Bracon Ash. It underscores Novuna Business Finance as a serious player in the emerging development finance space, which has seen limited competition to date. Additionally, it highlights Novuna's confidence in Luminous and their willingness to support our business at both a corporate and development level as we pursue our IPP strategy over the medium term."
Philippe Bazin, Head of Sustainable Energy at Novuna Business Finance, commented: “We are delighted to have been able to support Luminous with this development facility. The flexibility integral to this arrangement has been key to getting the deal over the line, enabling Luminous to address both development and overhead requirements on a global scale. We are proud to have supported their previous project, the recently energised Bracon Ash, and look forward to continuing our partnership as they transition to an independent power producer. We’re excited about the opportunities this facility unlocks and look forward to leveraging it to further support Luminous’s mission of advancing renewable energy solutions globally."