Frontier Energy (ASX:FHE) expects financial close on up to $280 million of project debt this month (November 2026) after executing a syndicated facility agreement (SFA).
The facilities, alongside a $110 million placement completed in July 2026, are expected to fully fund stage one of the Waroona Renewable Energy Project through to first energy generation in 2028.
A syndicate of international lenders led by Natixis CIB and Sumitomo Mitsui Banking is providing the senior secured, non-recourse facilities, which comprise up to about $250 million for a construction and term facility; up to about $13 million for a bank guarantee facility; and up to about $17 million for a debt service reserve facility.
The facilities carry a legal maturity of three years from financial close, with a one-year extension option at the discretion of each lender. Repayments are sculpted over a notional 18-year period.
Financial close remains subject to conditions precedent, including execution of the capacity investment scheme agreement with the Australian Government and entering into interest rate hedging to fix rates over the construction period.
Frontier expects to satisfy both conditions in the coming weeks, with first drawdown forecast for the March quarter of 2027.
Executive Chairman Jamie Cullen says the execution of the SFA is a major milestone for Frontier.
“With the SFA executed and financial close on track to occur during November, construction activities at our Waroona Project are ramping up, whilst we also continue to work through future expansion opportunities,” Cullen says.
Stage one of the Waroona Project comprises a 132-megawatt (MW) solar facility and an 81.5MW battery energy storage system designed to dispatch power during high-value peak evening periods.
Frontier Energy is a mineral explorer and green hydrogen/renewable energy company developing renewable assets, headlined by its Waroona Project in southwest WA.
Write to Paula Fabe at Mining.com.au
Main image: Frontier Energy
