Intersect Power has secured over €2bn in financing for the construction and operation of a six-project renewable portfolio in the US totalling 2200MW.
The company announced closings on eight separate transactions totalling €2.3bn that will allow it to develop the late-stage solar projects and 1.4 gigawat-hours of storage that will be in operation by 2023.
These projects include the Oberon 1 and 2 and Athos 3 in California as well as the Radian and Lumina 1 and 2 in Texas.
The Athos 3 and Radian projects are currently under construction and will come online in late 2022.
The five-lender financing was led by co-coordinating lead arrangers, MUFG and Santander Bank.
The group also included KeyBanc Capital Markets, CoBank, and Helaba as joint lead arrangers.
Intersect said that the transactions cover construction financing, tax equity, land financing and portfolio level term debt with industry-leading partners.
The company is expecting to deliver superior risk-adjusted returns for investors through its differentiated approach to power marketing and financing, of which is focused on the active management of shorter-tenor offtake contracts and portfolio-level financing.
Intersect chief executive officer Sheldon Kimber said: “These closings demonstrate what Intersect has been saying for some time now – that today’s long-term offtake contracts actually destroy value, and that there are innovative ways to finance clean energy assets which enable more valuable offtake structures.
“This financing will allow Intersect to deliver a core set of projects in the next two years that will serve as the platform for future growth into green hydrogen and beyond.
“This is the base from which our company will build the most scalable, transformative clean energy projects that minimize cost and risk per MW deployed, and move the needle on the deep decarbonization of our economy.”
These finances also included €1.2bn of portfolio level, term debt funding provided by HPS Investment Partners and Co-Investors, along with existing Intersect investors CarVal Investors, Generate and Climate Adaptive Infrastructure.
Bank of America and Morgan Stanley served as co-lead arrangers and structuring agents on the term debt placement.
HPS Investment Partners governing partner Michael Patterson said: “Intersect Power is a market leader in developing clean energy infrastructure at the scale needed to move the needle on the incredibly important transition to a sustainable future.
“We are thrilled to partner with Sheldon and his talented team and bring our renewable energy expertise and capital to bear to help accelerate Intersect’s growth trajectory across established and emerging areas of renewable power generation and infrastructure.
“The innovative financial solutions that Intersect will be able to implement thanks to this landmark transaction will play a key role in solidifying its position at the forefront of the industry and we look forward to continuing to support the Company as it builds on its strong track record of success.”
Bank of America managing director Omer Farooq said: “Bank of America is committed to delivering creative and holistic solutions to the renewable energy sector.
“We are pleased to support the Intersect Power team with its complementary financing objectives – spanning term debt placement, tax equity raise and power hedging – and look forward to collaboration on future opportunities.”