US-based independent power producer Treaty Oak Clean Energy has secured $300m financing to accelerate the buildout of its 17GW pipeline of solar, wind, and battery storage projects.
The corporate credit facility was led by ING Capital, Nomura Corporate Funding Americas, and Sumitomo Mitsui Banking Corporation (SMBC).
Treaty Oak’s chief executive Chris Elrod said: “This facility strategically positions us to accelerate our buildout of important renewable projects in the US and opportunistically approach a market that is experiencing significant regulatory change.
“This financing reflects strong lender confidence in our business model and management team and gives us a competitive advantage.”
Proceeds from the facility will support Treaty Oak’s strategic growth objectives, providing capital for interconnection and offtake letters of credit, equipment procurement, and general corporate expenses to advance the company’s renewable energy pipeline.
PEI Global Partners served as exclusive financial advisor to Treaty Oak for the transaction. Latham & Watkins acted as borrower’s counsel, while Norton Rose Fullbright US LLP served as lenders’ counsel.
“This transaction highlights the strength and capabilities of the Treaty Oak platform, supported by a syndicate of top-tier global lenders,” said Sky Fabian, partner at PEI Global Partners.
“We are pleased to work alongside the company to secure a highly accretive credit facility that will enable the company’s commercialisation of the next wave of clean energy development projects across the US.”
Treaty Oak’s pipeline includes 17.3GW of utility-scale solar, wind, and battery energy storage (BESS) projects diversified across the major power markets within the United States.
The company has secured long-term power purchase agreements for its renewable energy portfolio. To date, 485MW of projects have executed offtake or are under exclusivity with an additional 1GW under negotiation.
Treaty Oak has begun construction of the 100MW Redfield solar project in Arkansas and will break ground on an additional 385MW of solar projects located in Louisiana in 2025.