Delorean (ASX:DEL) executed project finance documentation with National Australia Bank (ASX:NAB) for loan facilities of AU$14.5 million to support the construction of the SA1 Salisbury bioenergy project in South Australia, according to a Tuesday Australian bourse filing.

The project finance facilities will refinance AU$14.5 million of Delorean's existing AU$37 million corporate finance package with Tanarra Restructuring Partners at a lower cost of debt.

The first tranche under the facilities of AU$12.1 million will have a tenure of up to July 31, 2026, and carry an interest rate of the bank bill swap bid rate plus 5%. The second tranche under the facilities of AU$2.4 million will have a tenure of up to July 31, 2028, and carry an interest rate of the bank bill swap bid rate plus 3.5%.

The firm and the bank will work together in the next 12 months to potentially finalize a longer-term debt facility for the SA1 project.