GreenH2 Fertiliser — Funding Strategy
The R5.0 billion seed and development raise, the overall R37 billion financing plan across equity and senior debt and the use of funds underpinning GreenH2.
Section 14 · Business Plan
Funding Strategy
The R5.0 billion seed and development raise, the overall R37 billion financing plan across equity and senior debt and the use of funds underpinning GreenH2.
This Plan seeks a R5.0 billion seed and project-development round.
The round funds the Company from concept to financial close — the point
at which the balance of equity (development-finance and strategic
capital) and the senior project-debt facility are committed and drawn.
The seed tranche therefore carries the highest risk-adjusted return
potential, converting development risk into a permitted, contracted,
bankable asset.
14.1 Use of the R5.0bn seed funds
Table 23. Allocation of the seed and development
raise.
| Use of funds | Amount |
|---|---|
| Engineering & FEED | R1.20bn |
| Permits & Environmental | R0.30bn |
| Land & Site Infrastructure | R1.00bn |
| Development Team & Overheads | R0.50bn |
| Working Capital Reserve | R0.50bn |
| Contingency | R1.50bn |
| Total raise | R5.00bn |
14.2 Overall financing plan
At financial close the full capital stack is assembled: roughly R22
billion of senior project debt (~60%) and R15 billion of equity (~40%),
of which this R5.0 billion seed forms the first-drawn development
tranche. The structure carries a substantial equity cushion, an
interest-only grace period through commissioning, and a debt-service
reserve account — features that lenders require and that protect the
Project through its riskiest period.
Table 24. Indicative capital stack at financial
close.
| Source | Amount | Share |
|---|---|---|
| Senior project debt | R22.0bn | ~59% |
| Equity – seed (this round) | R5.0bn | ~14% |
| Equity – financial close | R10.0bn | ~27% |
| Total funding | ~R37bn | 100% |
14.3 Indicative senior-debt terms
| Term | Indicative basis |
|---|---|
| Facility type | Senior project-finance term loan (limited recourse) |
| Amount / gearing | ~R22bn; ~60% of funded cost |
| All-in rate | ~11.8% (JIBAR-linked plus margin; partial hedge) |
| Tenor / repayment | 12-year level-principal amortisation; interest-only grace through ramp (Y4–Y5) |
| Security | First-ranking over project assets, accounts, shares and contracts |
| Reserves | Debt-service reserve account (≥ 6 months); maintenance reserve |
14.4 Covenant framework
- DSCR covenant: minimum 1.30x, tested
semi-annually; the base case maintains 1.31x at first repayment rising
to 1.91x. - Gearing / leverage: net-debt/EBITDA ceiling
stepping down as the asset deleverages. - Distribution lock-up: dividends restricted until
DSCR and reserve conditions are met. - Conditions precedent: completed permits, ≥ 60%
contracted offtake, fixed-price EPC, independent engineer sign-off and
model audit before drawdown.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of GreenH2 Fertiliser Holdings (Pty) Ltd.