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Last updated on April 24, 2014 at 17:35 EDT

CBD Energy Secures US$25 Million Line of Credit

May 8, 2012

SYDNEY, May 8, 2012 /PRNewswire-Asia/ — CBD Energy (ASX:CBD) (“CBD” or “the Company”), a diversified renewable energy company focused on solar power installations, wind farm developments, energy efficiency design and solar module assembly in Australasia and Europe today announced that it has closed on a revolving US$25 million line of construction financing from a US financial institution. This facility enables CBD to rapidly ramp up work on its large pipeline of European solar projects while giving the company greater scope to utilise the higher-margin Build-Operate-Transfer (“BOT”) model as compared with traditional contracting on an engineering, procurement and construction basis.

CBD anticipates utilising the new facility to commence construction on 3 MW of ready-to-go rooftop projects in Italy during the current quarter and is bolstering its supply chain to support ongoing development activity in Europe of up to 5MW per month. When fully utilised, the financing facility is sufficient to support more than A$35 million revenue per quarter. Consequently, CBD is now able to prioritise projects in its current pipeline, focusing on those with potential net contribution margins above 10%.

“This is an important milestone for CBD,” explained Gerry McGowan, Managing Director of CBD. “International expansion to position CBD as a global solar developer is a key component of our long term growth strategy and builds on the experience gained in the delivery of our 8MW Thai project delivered late last year. With this financing in place, we can quickly reach critical efficient scale in Europe, where demand for solar projects is robust and off-take economics are codified and tested. This funding facility gives CBD the ability to efficiently build on its existing base in a market that is expected to continue to represent more than half of global installations this year and next”

Chardan Capital Markets, LLC (“Chardan”) acted as sole placement agent for the credit facility.

About CBD Energy (ASX:CBD)

CBD is Australia’s emerging leader in renewable energy, enabling the efficient use of renewable energy for utilities, businesses and households through operations in wind, solar, energy storage and engineering. For its fiscal year ended 30 June 2011, CBD recorded revenue of A$164.5 million and profit after tax of A$4.8 million. CBD is one of the largest non-utility suppliers and installers of solar energy generation equipment for both large- and domestic-scale operation in Australia. Utilising its globally competitive supply chain, CBD is also currently developing and profitably installing solar projects in Europe and Southeast Asia, both directly and through joint ventures. For more information on CBD, visit http://www.cbdenergy.com.au/.

About Chardan Capital Markets, LLC

Chardan is a global, full-service investment bank with offices in New York, Los Angeles, Sydney and Beijing. Chardan maintains a loyal, focused client base of U.S. institutional investors and family offices that are actively seeking investment opportunities in both public and private Australian entities. The firm also serves as a bridge between its Asian and Australian corporate clients and U.S. capital markets. Chardan’s investment banking group specialises in IPOs/secondaries, private placements, restructurings, M&A advisory services and mezzanine debt financing. Chardan’s research team has an international focus, specialising in actively covering non-U.S. listed companies. The NY and LA-based institutional trading desks provide 24-hour coverage for international equities and options.

Contacts:

Australia

Media and Investor Relations Contact
Ian Westbrook
Westbrook Financial Communications
(61) 407 958 137
ian@westbrookfin.com.au

United States

Investor Relations Contact Company Contact:
John Mattio, SVP James Greer, SVP USA
MZ Group CBD Energy – US Office
(212) 301 7131 (917) 714-4791
john.mattio@mzgroup.us james.greer@cbdenergy.com.au

SOURCE CBD Energy


Source: PR Newswire