Frontier Energy Secures Indicative Debt Terms for Waroona Renewable Project

Frontier Energy Limited ( (AU:FHE) ) has provided an update.

Frontier Energy has received indicative senior debt terms from tier-one global financial institutions to fund Stage One of its Waroona Renewable Energy Project, with proposed gearing of up to 70 percent, equating to about $220 million in senior debt and loan tenors of up to 25 years. The company is now moving to shortlist preferred banks for final due diligence while also considering up to $100 million in mezzanine financing, supported by long-term capacity credit revenues and contracts with tier-one equipment suppliers, positioning the project for a smoother path to financial close and operations.

Advisers Azure Capital and Aurecon have been engaged to lead debt advisory and independent technical due diligence, and legal advisers are finalising procurement and financing documentation. With key equipment pricing in line with expectations and lenders confirming acceptance of major contractors and technology, the financing process underpins Frontier’s ability to de-risk project execution and strengthen its position in Australia’s renewable infrastructure market.

The most recent analyst rating on (AU:FHE) stock is a Sell with a A$0.21 price target. To see the full list of analyst forecasts on Frontier Energy Limited stock, see the AU:FHE Stock Forecast page.

More about Frontier Energy Limited

Frontier Energy Limited is an Australian renewable energy developer focused on the Waroona Renewable Energy Project in Western Australia. The company is advancing a utility-scale solar and battery project backed by fixed-price capacity credits under the state’s Reserve Capacity Mechanism, providing long-term contracted revenue through 2032.

Average Trading Volume: 317,073

Technical Sentiment Signal: Sell

Current Market Cap: A$121M

Learn more about FHE stock on TipRanks’ Stock Analysis page.