LONDON (ShareCast) - (Sharecast News) - Energy transition specialist ix Net Zero announced an expansion of its financial capabilities through a restated and amended secured two-year term loan facility with European Depositary Bank (EDB) on Friday.
The AIM-traded company said the arrangement would see an increase in the loan facility of $4.25m, raising the total to $11.75m.

It said the loan, on use, carried a 10.5% interest rate, subject to periodic adjustments per EDB's dollar base rate, with interest payments made quarterly.

The funds could be employed for various purposes, including financing investments and addressing general working capital needs, backed by the company's guarantee.

To secure the loan, ix Net Zero pledged its shares, including those in its subsidiary ix Investments, and other proceeds, assets, and property.

Additionally, ix Investments initially pledged $4m as security in a deposit account with EDB, which the company invested in various financial instruments, generating a return to help offset interest expenses.

Furthermore, ix Investments committed to maintaining a minimum cash balance in an operating account, with the specific amount dependent on the remaining time until the facility matured, but decreasing to zero if total drawdowns remained below $4m.

As of 3 November, under the initial facility agreement, the company had drawn $2.6m.

"The increased loan facility will allow management to maintain its focus on scaling the business, following the recent addition of Citron Energy to the portfolio," said chief executive officer Pär Lindström.

"We are actively looking at a number of opportunities in the green energy sector both in and outside the existing portfolio.

"We are focused on businesses where we believe we can deploy our hands-on strategic management, resources and infrastructure, helping to build and develop these investments into successful contributors towards a net zero future."

At 1401 GMT, shares in ix Net Zero were up 9.09% at 18p.

Reporting by Josh White for Sharecast.com.

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