Singapore-based Equis Funds Group is raising construction debt to finance its 300 MW/600 MWh Calala Battery Energy Storage System (BESS) near Tamworth in New South Wales, according to three sources.

Calala has a unique revenue structure and multiple senior debt facilities, according to one source, who added that financing for the AUD 400m project is three-times oversubscribed.

Equis is finalising loan documentation before the project financing reaches financial close, he added.

The Minister for Planning and Public Spaces granted Development Consent to Calala on 28 June. The battery will be connected to the 330kV Tamworth Substation.

Equis has also been working with UBS to raise a new fund to invest in its BESS portfolio.

Most of the batteries that Equis is building are in Australia. The largest is the 600 MW/1.6 GWh Melbourne Renewable Energy Hub (MREH).

In February, Equis Australia reached financial close on the first 200 MW/800 MWh stage of the MREH with AUD 245m of equity from Victoria’s State Electricity Commission (SEC) and AUD 400m of debt provided by Export Development Canada, Societe Generale, Standard Chartered and Westpac.

Once completed, the batteries will be connected to the National Electricity Market by a 500kV high voltage line.

The developer is planning to build the 200 MW/800 MWh Koolunga BESS near the Brinkworth Substation in South Australia and the 200 MW/800 MWh Lower Wonga BESS near Gympie in Queensland.

Equis expects to reach financial close with the rest of its battery portfolio within the next 12 months, one of the sources said, adding that it plans to project finance an uncontracted battery.

An Equis spokesperson declined comment.