Sunfire's €200M Bank Loan Secured with Government Guarantee
Buzzin' in Dresden
Germany and Saxony promise financial support for hydrogen firms in Dresden
The linchpin of green hydrogen, Sunfire, based in Dresden, has managed to snag some serious dough from the big leagues. The industrial electrolyser manufacturer, established in 2010, has clinched a bank loan of a cool €200 million, with a hefty 80% of that being guaranteed by a combo of state aid from the federal government and the Free State of Saxony, as they spilled the beans on Tuesday. The remaining 20%? That's on the banks themselves, they say. This cash infusion will help secure customer payments and ensure contractual performance and warranty obligations.
The Nitty-Gritty
Now, it's worth noting that the details about a €200 million loan might not be as cut-and-dried as it seems. While Sunfire does boast access to roughly €200 million from previously approved, untapped grant funding to propel its green hydrogen endeavors through alkaline and solid oxide electrolysis technologies, this grant money, not a loan, forms part of their financial backing.
Sunfire had already scored €215 million in a Series E equity financing round and landed a term loan of up to €100 million from the European Investment Bank (EIB), but specifics about the €200 million loan and the role of government aid and participating banks beyond the grant funding and EIB loan have yet to surface.
The Big Picture
While Sunfire's green hydrogen ambitions are getting a significant financial boost, the finer beans about the €200 million loan still seem to be shrouded in mystery—that's your 411 right here! 💰💥🇩🇪💦🌱
- The manufacturer of industrial electrolysers, Sunfire based in Dresden, has secured a €200 million loan from the financial industry, with a substantial portion of it guaranteed by both the German federal government and the Free State of Saxony.
- The €200 million loan will aid Sunfire in ensuring customer payments, contractual performance, and warranty obligations, contributing to the growth of their green hydrogen endeavors.
- Previously, Sunfire had successfully secured €215 million in a Series E equity financing round and a term loan of up to €100 million from the European Investment Bank (EIB).
- Despite the secured bank loan, the specific details regarding the €200 million financing, including the role of participating banks and the extent of government aid beyond the grant funding and EIB loan, remain unclear.
