CBD managing director Gerry McGowan said the funding is timely for enabling CBD to create value from its substantial international project pipeline and also reflects confidence of a major US institution in the business model CBD has developed.

"Achieving funding in this market at a premium to our current share price is a positive reflection on the team we have built and the opportunities we have created," McGowan added.

Partners for Growth (PFG) the lead investor is expected to participate in subsequent closings under the facility.

Under the facility, warrants equal to 25% of the conversion shares are issuable with each convertible note and are excisable for five years at a price of $A0.053 ($0.052).

The convertible notes are secured and have a term of 36 months.

CBD is expecting to use the net proceeds from the initial and subsequent funding to expand its restructured residential solar businesses, and progress opportunities within the commercial solar market in Australia, Europe and the US.

The company also plans to move forward with its wind farm development program in Australia, including the completion of the initial development and ownership transfer of the Taralga Wind Project.

CBD also aims to accelerate sales growth in both the US and Australia for integrated solar panels and maximize opportunities to deliver a large pipeline of European solar projects, and completion of 5MW under construction projects.

CBD Energy is a diversified renewable energy company and PFG is a financing group.