Cloudberry Clean Energy ASA (Oslo: CLOUD) has increased its NOK 700 million ($77M) credit facility agreement to NOK 1 400 million ($154M) with a possibility to increase the facility by an additional NOK 500 million ($55M).
Cloudberry, a Nordic renewable energy company, has entered into the credit facility agreement to finance its growth strategy focused on owning, developing, and operating hydro and wind power in the Nordics.
The credit facility agreement is entered into with SpareBank 1 SR Bank ASA and other SpareBank 1 banks. The credit facility will strengthen the Company’s ability to grow both organically and in-organically and has high flexibility with no fixed price (PPA) requirements. Cloudberry normally hedges all long-term debt to reduce interest rate risk (typically 15 years). The facility can be used for financing hydro as well as wind assets in Norway and Sweden.
“Cloudberry continues its growth journey in the Nordic renewable market. Establishing flexible and long-term financing is an important part of the realization of our growth strategy. We are pleased to work with high-quality savings banks in Norway, which support our growth. Through this facility agreement, we continue to reduce our debt margin cost below the 2% margin”, says Anders Lenborg, CEO of Cloudberry.