eEnergy Group is one of UK’s major B2B digital energy services companies, responsible for eliminating the barriers to clean energy generation and energy waste reduction by offering organisations hardware and software tools that don't require upfront capital investment.

eEnergy serves over 1,800 private sector and public sector customers, including Local Authorities, schools, Government-supported entities, and NHS Trusts. The company is a major supplier to the education sector and has been awarded the Green Economy Mark by the London Stock Exchange.

During the 12 months to June 2022, eEnergy helped avoid 128,231 tonnes of carbon by transitioning their clients to green energy, and reducing their costs and carbon emissions.

eEnergy was looking for a new financing solution exclusively for the funding of public sector energy transition projects across the full range of its product offering (supported by assets including LED lighting, rooftop solar, EV charges and metering equipment). NatWest was approached for support.

As a new customer to the bank, the NatWest deal team explored eEnergy’s proposition, growth strategy and resulting financing requirements to structure the most suitable debt facility alongside the Companies Advisor Longspur Capital.  Based on these discussions, NatWest structured bilateral lending facilities of up to £40 million (across a Term Loan, Revolving Credit Facility and uncommitted accordion). The terms of the facilities were tailored to accommodate the specific nature of the projects whilst providing operational flexibility to execute the projected growth pipeline across the range of assets and contract types.

Available for a period of up to 12 years, the financing will be deployed through a newly formed special purpose vehicle owned by eEnergy, with eEnergy becoming the operator of each project. The facility will also lower their cost of capital, delivering an attractive financial return on the retained project interests.

The innovative structure of the package gives eEnergy a unique, compliant, off-balance sheet solution for public sector customers, aiding the company in fulfilling numerous contracts for the installation of energy saving assets such as rooftop solar panels, smart meters, EV charging and LED lighting, to counterparties such as Local Authorities, State Funded Schools and Government Supported Entities to accelerate the decarbonisation of these critical social infrastructures where it is most needed.

Harvey Sinclair, eEnergy CEO, commented: "We are extremely pleased to announce this £40 million financing package with NatWest, marking the beginning of a new collaboration between our two organisations. This facility is the result of significant investment in honing our proposition to public sector customers, and it gives us a clear competitive advantage in the market by allowing us to offer our leading net zero energy efficiency services to larger multi-site projects and contracts. Particularly exciting is the innovative structure of the new facility which will lower our cost of capital and provide us with longer-term economic upside on each project. We look forward to this new relationship with NatWest which we hope is a start of a much longer-term relationship given the opportunities available.”

Jacob Lloyd, Head of Specialist Asset Finance at NatWest, added: “NatWest is delighted to be able to support eEnergy by acting as Structuring Bank and Hedge Counterparty for this innovative financing. We look forward to working with the eEnergy team going forward as they execute their contract pipeline and assist the public sector with deploying energy efficient and decarbonising assets. This transaction is another example of NatWest's commitment and ability to support the UK's green transition journey, aligning with our purpose and values. Furthermore, the deal also showcases NatWest’s ability to support the customer journey holistically by acting as Structuring Bank, Lender and Hedge Counterparty, with multiple specialist teams within our bank working closely together to ensure the best outcome for our customers.”