German electrolysis pioneer Sunfire has secured €200 million in guaranteed financing. The financing is provided by a consortium led by Commerzbank and other leading German and European commercial banks. The consortium includes, in addition to Commerzbank, Société Générale, BNP Paribas, LBBW and Ostsächsische Sparkasse Dresden. The commitment marks a strong vote of confidence from both financial institutions and policymakers in the industrial capabilities and financial viability of the climate technology scale-up. It represents a significant milestone for Sunfire as a company but also for the electrolysis industry.
The guarantee line arranged by Commerzbank will be used to secure customer advance payments as well as contract fulfilment and warranty obligations. 80 percent of the loan amount is secured by parallel default guarantees from the German Federal Government and the Free State of Saxony, with the remaining 20 percent provided by the banks themselves. The guarantee financing has a term of five years.
The instrument eliminates the need for Sunfire to provide cash collateral. As a result, the German electrolysis specialist can secure industrial projects and customer orders financially more efficient. It also allows Sunfire to utilize advance payments received for the production of electrolyzers more effectively – without tying up its own funds as collateral.
The public guarantees also represent a special feature: this instrument is being specifically used to support the development of a future market. It will enable Sunfire to realize several customer projects in parallel, thereby driving forward the development of the hydrogen market.
Photo of Sunfire
Press release https://tinyurl.com/4z963nnt
