Australian clean energy company Frontier Energy has signed a Syndicated Facility Agreement (SFA) for debt facilities of up to A$280m ($195m) to support the Stage One development of its Waroona Renewable Energy Project.
The company announced the execution of the agreement with a group of international banks led by Sumitomo Mitsui Banking Corporation and Natixis CIB, marking one of the final milestones ahead of reaching financial close, expected in November 2026.
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These financing arrangements include a construction and term facility of up to A$250m, a debt service reserve facility of up to A$17m, and a bank guarantee facility of up to A$13m.
The debt facilities are senior, secured, non-recourse project finance structures, with a three-year maturity term from financial close and an optional one-year extension at lender discretion.
Repayments are structured over a notional 18-year period to match the anticipated lifespan of the project.
Completion of the financial close is subject to conditions including the execution of a Capacity Investment Scheme agreement with the Commonwealth and finalisation of interest rate hedging arrangements. According to the company, both requirements are due to be met in the coming weeks.
The first drawdown of funds is anticipated in the first quarter of 2027.
Funding from the debt facilities, combined with an A$110m placement completed in July 2026, is expected to cover all costs for Stage One of the project until initial energy generation in 2028.
Frontier Energy’s flagship Waroona Renewable Energy Project is situated about 120km south of Perth and aims to provide reliable, contracted cash flows to meet growing electricity demand on the South West Interconnected System.
Stage One of the development features a 132MW solar facility and an 81.5MW battery storage system to capture and distribute electricity based on demand.
Frontier executive chairman Jamie Cullen said: “Execution of the SFA is a major milestone for Frontier and comes as site works at Stage One are ramping up.
“We would like to thank Azure Capital, the Company’s debt finance advisor, as well as the syndicated lending consortium that has committed the funding for developing Stage One, a major renewable energy project for Western Australia.”
Looking ahead, the company plans a second stage for the Waroona site, with approvals already in place for a 130MW solar facility and 80MW battery system.
