Genex secures funding from J-Power for pumped storage project

3 August 2020

Genex has secured a $25m investment from Japanese utility company J-Power for its Kidston Pumped Storage Hydro Project in Queensland, Australia

The share subscription agreement (SSA) will give J-Power a 15%-19.9% holding in Genex. 

The signing of the SSA follows the signing of an original Share Subscription Agreement with J-Power on 6 June 2019, and the subsequent termination of this agreement and the signing of a new Memorandum of Understanding on 22 November 2019, following the requirement to restructure the financing of the Kidston project.

The agreement, which was signed today, is largely on the same terms as the Original SSA, and provides for a conditional investment of up to A$25 million by way of a subscription for ordinary shares in Genex, with the proceeds to be principally applied towards Genex’s equity funding component for the construction of the Project.

 The balance of the equity requirement for the Project will be funded via a direct investment in the project.

The Agreement is subject to several conditions precedent, including: approval of Genex shareholders at an extraordinary general meeting (EGM); execution of a Facility Agreement to be entered into between the K2-Hydro project entity and the Northern Australia Infrastructure Facility; approval of the Australian Foreign Investment Review Board; and financial close for the project occurring prior to 31 December 2020. 

As a further condition, Genex has also agreed to enter into a Technical Services Agreement (TSA) with J-Power which will see J-Power provide certain professional technical advisory services to Genex in relation to the development and operational stages of the Project.

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