
Power trading platform operator Digital Grid secured commitment lines and an overdraft facilities totaling 10.6 billion yen in expectation of an increase in required working capital, the company announced on August 27, 2024.
“We raised funds to respond to the expected increase in trading volume [on our platform] and the related increase in required advance payments, as well as due to the expected increase in wholesale power prices,” the company said in its statement. Digital Grid’s business model creates a lag between the time the company is required to pay power suppliers and the time it is paid by its customers.
Digital Grid secured over half of the amount through a 5.6 billion yen syndicated commitment line contract agreed to in July 2024 with a Mizuho Bank-arranged syndicate joined by Resona Bank and Taiko Bank.
The remaining 5 billion was secured through bilateral commitment lines and overdraft facilities with Sumitomo Mitsui Banking Corporation, Shoko Chukin Bank, and The Bank of Fukuoka concluded between July and August 2024.
Among other things, Digital Grid has been active in serving as a balancing service provider for self-wheeling arrangements (e.g., for Daihatsu Diesel Manufacturing and Prologis) and corporate PPAs.