Luminous Energy secures £5.5m development finance facility with Novuna

Luminous Energy, a UK-based leader in renewable energy and battery storage development, has announced the successful signing of a three-year, £5.5 million development finance facility with Novuna Business Finance.

The newly secured facility is designed to provide Luminous with vital financial flexibility, enabling the company to support both its expansive development pipeline and broader corporate operations across key international markets, including the UK, Australia, the US, and Germany.

To back the arrangement, Novuna Business Finance has taken security over Luminous’s UK-based distribution-connected solar portfolio, including the recently energised Bracon Ash project. Novuna had previously provided senior debt for Bracon Ash, cementing the foundation for the current facility.

Three features distinguish the new agreement:

• Global flexibility: Funds can be deployed internationally, covering both project development and corporate overheads.
• Repayment and redraw flexibility: The facility allows for repayment and subsequent redrawing of funds throughout the three-year term.
• Asset-based adaptability: Assets can be added to the facility with due diligence required only at the point of drawdown, up to the full £5.5 million commitment.

Guy Laverack, Chief Investment Officer at Luminous Energy Group, commented: “This facility represents a continuation of the excellent working relationship originally established through the senior debt financing of Bracon Ash.

“It underscores Novuna Business Finance as a serious player in the emerging development finance space, which has seen limited competition to date. Additionally, it highlights Novuna’s confidence in Luminous and their willingness to support our business at both a corporate and development level as we pursue our IPP strategy over the medium term.”

Philippe Bazin, Head of Sustainable Energy at Novuna Business Finance, added: “We are delighted to have been able to support Luminous with this development facility. The flexibility integral to this arrangement has been key to getting the deal over the line, enabling Luminous to address both development and overhead requirements on a global scale. We are proud to have supported their previous project, the recently energised Bracon Ash, and look forward to continuing our partnership as they transition to an independent power producer.”