RE Royalties Partners with Abraxas Power and Settles Loan with Switch Power

RE Royalties Ltd., a company specializing in renewable energy royalty-based financing, has signed an agreement with Abraxas Power Maldinvest Ltd., a subsidiary of Abraxas Power Corp., to provide a secured loan of up to CAD $10 million aimed at supporting solar projects in the Maldives. The initial tranche of CAD $1.4 million has already been allocated for two solar projects in Malé and a nearby island resort. These projects aim to replace diesel-generated electricity, decreasing environmental impacts.

The loan, with an 18-month term and 13% interest rate, includes a CAD $200,000 fee for legal and due diligence expenses, and a 2.0% gross revenue royalty for RE Royalties. CEO Bernard Tan sees this as a step into a new market with potential for further investment opportunities. Additionally, Abraxas is focused on decarbonization in line with the Maldives' national commitments.

Concurrently, RE Royalties settled outstanding loans with Switch Power's subsidiaries, acquiring them as wholly owned subsidiaries, which involves operating battery and solar projects.