THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

18 August 2025

Gresham House Energy Storage Fund plc

("GRID" or the "Company")

Operational Portfolio Refinancing Unlocking Growth

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund investing in utility-scale battery energy storage systems (BESS), is delighted to announce the signing of a new debt facility which will refinance existing debt facilities, reducing its cost of debt, releasing capital for its Three-year Plan and paving the way for a revised Capital Allocation Policy.

Refinancing

The debt refinancing secures a £220mn loan from a syndicate of five lenders with a seven year legal maturity and an amortisation profile over 14 years. The new facility enjoys a margin of 225bp over SONIA compared with 300bp for the current facility.

Contracted cashflows, from the combination of tolls, capacity market contracts, and the recently announced long term floors on 88% of GRID's portfolio (the "Portfolio"), are expected to fully cover project level operational costs, interest, and debt repayments during the term of the loan. This will significantly protect the Company from potential future downside revenue scenarios.

At the end of the loan term of seven years, less than 50% of the loan principal amount is expected to remain outstanding. The Company will then seek to refinance the remaining balance at that time.

The refinancing will replace £195mn in senior debt facilities maturing in September 2028, of which £160mn has currently been drawn. Net debt to GAV is expected to remain below 30% throughout the debt tenor. Gross debt to NAV is expected to remain below 40%, well below the limit set out in our investment policy of 50%.

In addition to the £220mn loan facility, the Company has also put in place a Debt Service Reserve Facility (DSRF) of £18.6mn and a short-term VAT facility of £1.6mn to improve working capital during the construction phase of project augmentations.

Capital Allocation Policy

The upsized facility, combined with increased operational cashflow, provides capital for investment in augmentations and the acquisition of new pipeline projects.

More specifically:

-     A further 282MW of operational projects are set to be augmented to a two hour or longer duration, adding a net 350MWh to the Portfolio and taking GRID's overall portfolio average duration to circa two hours.

-     Some capital is intended to be used to acquire project rights for 694MW of new projects from GRID's exclusive pipeline once due diligence has been completed.  

The refinancing and implementation of recent floor agreements provides the Company with a robust capital structure and improved cash flow visibility, enabling it to pursue the growth ambitions underpinning its Three-year Plan. In addition to prioritising investments that drive NAV and EBITDA growth, the Board is now able to consider the use of remaining cashflow such as for the implementation of a dividend policy and/or share buybacks. The Company intends to formalise and announce its Capital Allocation Policy before or alongside its interim results.

New construction pipeline

The pipeline of projects announced at the Capital Markets Day in November 2024 remains unchanged and is as follows:

Ocker Hill                    240MW

Cockenzie A                240MW

Elland 2                       100MW

Monet's Garden          57MW (previously 50MW)

Lister Drive                  57MW (previously 50MW)

Total                           694MW

All the projects are fully consented and will commence construction subject to additional subsequent project-level senior debt facilities separate from the £220mn loan facility announced today which will not be cross collateralised with each other or with the operational portfolio's assets. These project level facilities are in the process of being negotiated.

Each project is also awaiting confirmation of its 'protected' position in the national grid connection queue following the Gate 2 Queue Reform process being administered by the National Energy System Operator (NESO). The protected status of each project is based on the near-term connection dates (2027 or earlier) and their fully consented status. The timeline for NESO approval is during H2 2025.

Gresham House Asset Management Limited (the "Manager") aims to start construction on as many of these five new projects as possible by the end of 2025 and the balance in H1 2026. All projects are being designed to a two hour duration or longer.

John Leggate CBE, Chair of Gresham House Energy Storage Fund plc, commented:

"GRID is clearly established as the market leader in BESS in Great Britain. Today's achievement gives the Company a much stronger capital structure, setting the foundation for us to pursue our growth agenda as the sector sees significant growth over the coming decade.

Building on the work of the last nine months, the Company is now ready to begin the implementation of key elements of the Three-year Plan announced late last year, augmenting the existing Portfolio and acquiring new project rights.

The significantly higher contracted minimum revenue base, c.50% of projected revenues, combined with a more conventional amortising debt structure, repositions our Company as a lower risk business, while preserving its substantial growth potential. 

The Board looks forward to sharing details of its revised Capital Allocation Policy in the coming weeks; at latest this will be announced alongside the interims in late September."

Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc & Managing Director of Gresham House Energy Transition, said:

"With this refinancing, we are now able to execute on our exciting growth plans: augmenting the existing Portfolio to two hours and acquiring the project rights to grow megawatt capacity by c.70% from the construction of new projects.

The team has worked hard to put in place the project rights, designs and EPC agreements to start construction of the augmentations as soon as this refinancing has completed.

We also look forward to receiving the results of NESO's Gate 2 process and putting in place the incremental senior debt and any other funding required to kick off construction of the new pipeline as well."

ENDS

For further information, please contact:

                                                                       
LEI: 213800MSJXKH25C23D82

About the Company and the Manager

Gresham House Energy Storage Fund plc aims to invest in a diversified portfolio of utility-scale battery energy storage systems (known as BESS) located in Great Britain and internationally. The Company seeks to provide investors with the prospect of capital growth through the re-investment of net cash generated in excess of its target dividend in accordance with the Company's investment policy.

Gresham House Asset Management Ltd is the FCA authorised operating business of Gresham House Ltd, a specialist alternative asset manager. Gresham House is committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.

www.greshamhouse.com

Definition of utility-scale battery energy storage systems (BESS)

Utility-scale battery energy storage systems (BESS) are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK's stated target to reduce carbon emissions. They store excess energy generated by renewable energy sources and then release that stored energy back into the grid during peak hours when there is increased demand.

DISCLAIMERS

This announcement has been prepared for information purposes only. This announcement does not constitute a prospectus relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor. The merits or suitability of any securities must be independently determined by the recipient on the basis of its own investigation and evaluation of the Company. Any such determination should involve, among other things, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities.

This announcement may not be used in making any investment decision in isolation. This announcement on its own does not contain sufficient information to support an investment decision and investors should ensure that they obtain all available relevant information before making any investment. This announcement does not constitute or form part of and may not be construed as an offer to sell, or an invitation to purchase or otherwise acquire, investments of any description, nor as a recommendation regarding the possible offering or the provision of investment advice by any party. No information in this announcement should be construed as providing financial, investment or other professional advice and each prospective investor should consult its own legal, business, tax and other advisers in evaluating the investment opportunity. No reliance may be placed for any purposes whatsoever on this announcement or its completeness.

The information and opinions contained in this announcement are provided as at the date of the announcement and are subject to change without notice and no representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information contained in this announcement and no responsibility, obligation or liability or duty (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company, the Manager or any of their affiliates or by any of their respective officers, employees or agents to update or revise publicly any of the statements contained in this announcement. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this announcement or on its completeness, accuracy or fairness. The document has not been approved by any competent regulatory or supervisory authority.

Any investment in the Company is speculative, involves a high degree of risk, and could result in the loss of all or substantially all of an investment in the Company. Results can be positively or negatively affected by market conditions beyond the control of the Company or any other person. There can be no assurance that any targeted returns will be achieved or that the Company will be able to implement its investment strategy or achieve its investment objectives. There is no guarantee that any such returns can be achieved or can be continued if achieved, nor that the Company will make any distributions whatsoever.

The information in this announcement may include forward-looking statements, which are based on the current expectations, intentions and projections about future events and trends or other matters that are not historical facts and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereof) or other variations thereof or comparable terminology. These forward-looking statements, as well as those included in any related materials, are not guarantees of future performance and are subject to known and unknown risks, uncertainties, assumptions about the Company and other factors, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur and actual results may differ materially from those expressed or implied by such forward looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements.

Each of the Company, the Manager and their affiliates and their respective officers, employees and agents expressly disclaim any and all liability which may be based on this announcement and any errors or omissions from this announcement.

No representation or warranty is given to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views contained in this announcement are based on financial, economic, market and other conditions prevailing as at the date of this announcement. The information contained in this announcement will not be updated.