BayWa r.e. has secured a $115 million credit facility from Nomura to finance the development of a 1.1 GW utility-scale solar and solar-plus-storage projects in Arkansas, North Carolina, Illinois, Kentucky and Washington.
The credit facility will also support the development of 188 MWh of battery storage facilities across the same states, with the multi-year financing to support projects brought online between 2024 and 2026.
“We are excited to be partnering with Nomura to deploy clean, reliable energy at a time when there is a critical need for capacity,” said Fred Robinson, chief executive officer of BayWa r.e. solar projects.
The investment includes a revolving credit facility and letter of credit to provide financing for the expansion of projects across a number of jurisdictions. Nomura was lead arranger of the credit facility, while Norton Rose Fulbright represented the lender group. Skadden, Arps, Slate, Meagher & Flom was counsel to BayWa.
“As a leading clean energy financier and customer-focused institution, we’re pleased to support BayWa r.e., one of the leading developers and operators in the renewable energy space,” said Alain Halimi, executive director, Nomura. “We always focus on working with our clients to execute customized solutions that best fit their needs and we are excited to collaborate with BayWa r.e. for this unique and strategic financing”.
As additional projects are added to the portfolio, the credit facility is expected to be upsized in the coming months.
Based in Irvine, Calif., BayWa r.e. Solar Projects is a utility-scale solar developer in North America operated by BayWa AG. The U.S. company operates a pipeline of solar and storage projects totaling over 9 GW.
According to Mercom Capital Group, total corporate funding of $31.7 billion in 2022 was a 63% increase over 2021 at $19.5 billion, as global companies see the value in investing in renewable energy projects.
At the BloombergNEF Summit on April 25 in New York, clean technology VC investors from Cycle Capital and Energy Impact Partners said following the April collapse and receivership of Silicon Valley Bank, equity transactions involving renewable energy could be few and far between for the remainder of 2023, with subdued deal activity.
Debt financing should be readily available to companies with a proven track record and portfolio, said Lindsay Luger, partner of Energy Impact Partners, while numerous alternative asset lenders have also provided debt solutions in recent years, including EIP, a New York-based investment firm that has 60 strategic underwriters comprised of global utility firms.
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