Frontier Energy secures $280M debt package

• Frontier Energy has secured up to $280 million in credit-approved debt facilities for Stage 1 of its Waroona Renewable Energy Project.
• The approval satisfies the final condition to unlock a separate $110 million equity placement, fully funding the development.
• Construction works are set to begin immediately following equity settlement scheduled for July 21.

Frontier Energy (ASX:FHE) has secured up to $280 million in credit-approved debt facilities to fully fund the construction and commissioning of Stage 1 at its Waroona Renewable Energy Project.

The credit approval satisfies the remaining condition required to settle the company's previously announced $110 million equity placement.

“Today marks a defining milestone for Frontier and the Waroona Renewable Energy Project,” said Frontier Energy Executive Chairman Jamie Cullen.

The package includes an $13 million bank guarantee and an $17 million debt service reserve.

Following the announcement, the Frontier Energy share price was down at $0.21.

The business stated that confirmatory due diligence and documentation are expected to wrap up by October 2026, with the initial loan drawdown anticipated in late Q4 2026.

Stage 1 of the Waroona Project qualifies under green loan principles, allowing the business to access competitive interest margins typical for tier-1 infrastructure financing.