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Vow Green Metals has received indicative term sheet to raise green loan debt financing from DNB
29th April, 2024
Back to News
29th April, 2024
Vow Green Metals announced on April 25, 2024, that it has agreed on indicative terms for bank financing of the large-scale Hønefoss project with DNB, Norway's largest financial services group. The indicative term sheet includes a 50 percent loan guarantee from the governmental financial enterprise, Export Finance Norway (Eksfin). The loan amount will be in the range of NOK 330-350 million and the signing of the loan agreement is expected in May this year.
Together with equity investments from Vow Green Metals, Vardar, Enova and SIVA, the 10,000 tons first phase of the large-scale biocarbon facility under development at Hønefoss, including buildings and civil works for the 20,000 tons phase 2, is now fully financed. The remaining CAPEX for the second phase of the Hønefoss facility is expected to be financed during the second half of 2024 through governmental grant, additional debt facilities or equity capital.
Contractors for the civil works of the large-scale facility at Hønefoss have been selected and is expected to commence within days. Infrastructure and excavation work to prepare the plot for civil works was completed in December 2023.
DNB has been mandated as the structuring bank.