AetherGas Energy Business Plan — Funding Requirement & Capital Structure

Sources and uses

Uses (programme)	R m	Sources	R m
Exploration & drilling	950	Equity (40%)	1,920
LNG plant construction	1,700	Senior project debt (50%)	2,400
Helium liquefaction plant	1,100	DFI subordinated debt (10%)	480
Cryogenic logistics	420
Working capital	280
Environmental compliance	150
Technology systems	200
Total headline programme	4,800	Total headline raise	4,800

Figure 19. *Use of funds across the R4.8bn programme.*

The true peak requirement

The headline R4.8bn covers the physical programme and working capital but not the financing costs the structure itself creates. Capitalised senior interest during construction (R262m), subordinated PIK (R204m) and the R180m DSRA lift the true peak funding requirement to approximately R5.08 billion. The capitalised interest is absorbed within facility headroom, peak debt balances of R2.74bn senior and R0.61bn subordinated, but the arithmetic must be visible to lenders at close, not discovered mid-construction.

Figure 20. *Peak funding requirement versus headline raise.*

Key findingFunding gap and standby facility

Peak requirement ≈ R5.08bn vs the R4.8bn headline. The ~R285m difference is structural (IDC, PIK, DSRA), not contingency. A separate cost-overrun and delay buffer of 8–10% of remaining capex (R400–500m) should additionally be committed as a standby equity/mezzanine facility at close, the downside scenario consumes most of it. And tranche-1 equity of R1.1bn must be irrevocably committed at close: FY2027–28 combine R155m of EBITDA losses with R1.35bn of capex before senior debt draws at scale. Pledged-but-uncalled equity is the failure mode this sector has already demonstrated.

Facility terms (indicative term-sheet basis)

Facility	Amount	Pricing	Tenor / profile	Key conditions
Senior project debt	R2,400m	JIBAR +350–400bps	12-yr; IDC to FY29; sculpted amort from FY31	Reserves certified; ≥50% LNG offtake; ≥60% helium floors; DSRA
DFI subordinated	R480m	15% (PIK to FY29)	10-yr; partial sweep from FY31	ESG performance targets; development covenants
Equity	R1,920m	—	Drawn FY27–29, first-in	Milestone-released tranches; anti-dilution
Standby (recommended)	R400–500m	Commitment fee + margin	Available to FY2030	Overrun/delay triggers; drawstop cures

Figure 21. *Funding drawdown sequencing: equity first, debt against milestones.*