Australia's Akaysha Energy has announced the closing of a 650 million Australian dollar (A$650 million - US$430 million) debt raise with a group of eleven domestic and foreign banks.

The financing will provide construction funding for Akaysha's Orana Battery Energy Storage System (BESS) project and letter of credit (L/C) support to ensure the safety, reliability, and protection of the project throughout its lifecycle.

International bank participation

The lender group is made up of Australian banks including ANZ, CBA and Westpac, and international banks BNP Paribas, Canadian Imperial Bank of Commerce, DBS, ING, Mizuho, Rabobank, Siemens Financial Services through Siemens Bank, and SMBC.

The facility has a tenor of three years and will be used to fund the construction of Akaysha's latest project, Orana, which is located near Wellington in New South Wales.

L/C facility

The financing also provides more than A$75 million of L/Cs to support the project security obligations.

Security obligations in a renewable energy project are measures and requirements implemented to ensure the safety, reliability, and protection of the project throughout its lifecycle.

These obligations can encompass a variety of aspects, including physical security, cyber security, financial security, and compliance with legal and regulatory standards.

Strong bank support

"As the largest standalone BESS financing globally, this achievement not only secures the capital for Orana's construction but also highlights the strong support we have received from both local and international banks," says managing director and chief financial officer at Akaysha, Andrew Wegman.

He also credits support from Akaysha's owner, major investment group Blackrock, for their "commitment to advancing the energy transition in Australia and internationally" which he says has been "pivotal to reaching this milestone".

Megaproject

The BESS is one of the largest four-hour batteries globally and will add more than 1,660 megawatts per hour of storage capacity to the National Electricity Market (NEM).

The NEM is the wholesale electricity market that operates in eastern and southern Australia. It is one of the longest interconnected power systems in the world, spanning over 5,000 kilometres.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.