Zenith Energy Ltd (“Zenith”) is a Perth-based, listed (ASX:ZEN) Independent Power Producer to remote clients operating in “off-grid” locations in Australia and Papua New Guinea. Zenith is a market leader and specialist in bespoke solutions utilising diesel, gas, solar and hybrid generation across 12 projects consisting of over 400MW of capacity currently under contract and with a tender pipeline in excess of 350MW.
FIIG has arranged a $40m 7 year secured subordinated amortising note issue for Zenith. The Note Issue provides Zenith with long term capital which will predominantly be used to refinance senior debt and fund future projects. The long term bond finance is appropriate given the nature of the asset base and the long term contracted revenues.
Following successful recent issues for Plenary and Merredin Energy, Zenith is the latest infrastructure company to access the bond market through FIIG Securities to broaden its capital base. FIIG has provided a range of funding solutions across different sectors, including:
- Funding diversification to refinance and/or complement existing funding lines;
- Providing growth funding for capital expenditure and acquisitions; and
- Optimising the capital structure through extending maturities, fixed or floating rates, and secured and unsecured funding structures.