Frontier Energy (ASX:FHE) has secured credit-approved debt commitments of up to AU$280 million from Natixis and Sumitomo Mitsui Banking to fund development of its Waroona Renewable Energy Project, according to a Friday Australian bourse filing.

The financing package comprises a construction and term facility of up to AU$250 million, a bank guarantee facility of AU$13 million, and a debt service reserve facility of AU$17 million, per the filing.

The project is expected to be fully funded through construction and commissioning following the receipt of debt commitments and completion of the planned AU$110 million conditional equity placement, the filing said.

The company will now finalize documentation, complete due diligence, and satisfy all conditions precedent, with construction set to begin following equity settlement and financial close, the filing added.

The company's shares fell 5% in recent Friday trade.