Pattern Energy Closes $11B Financing For Massive U.S. Clean Energy Project

Image Source: Unsplash Renewable energy infrastructure developer and operator Pattern Energy (PEGI) announced this week that it has secured $11 billion in financing, consisting of a $8.8 billion in green loans and a $2.25 billion tax equity term loan facility, and that it has initiated construction on the SunZia Wind and Transmission projects, which the company described as “the largest clean energy infrastructure project in U.S. history.”Founded in 2009, San Francisco-based Pattern Energy develops and operates wind, solar, transmission, and energy storage projects, with an operational portfolio of 35 facilities across the U.S., Canada, Japan and Mexico consisting of 6 GW of renewable energy capacity, and a 25 GW global development portfolio.Located in central New Mexico, SunZia Wind is anticipated to generate over 3.5 GW of renewable energy, sufficient to power 1.2 million homes annually. SunZia Transmission will consist of a 525 mile high voltage direct current transmission line between New Mexico and south-central Arizona. The projects are expected to commence commercial operations in 2026.Hunter Armistead, CEO of Pattern Energy, said:

“Our hope is this successful financing of the largest clean energy infrastructure project in American history serves as an example for other ambitious renewable infrastructure initiatives that are needed to accelerate our transition to a carbon free future.”

The green loan financing package includes an integrated construction loan and letter of credit facility, two separate term facilities, and an operating phase letter of credit facility and a holding company loan facility. Coordinating lead arrangers on the loans consisted a 15 North American, European and Japan-based banks, including BNP Paribas, Credit Agricole, Societe Generale, Wells Fargo and Sumitomo Mitsui Banking Corporation. The tax equity term loan facility was provided by Banco Santander and Santander Bank N.A. as joint coordinating lead arrangers, and with Bank of America, GE Vernova, Natixis and Royal Bank of Canada as joint lead arrangers. The financing also included a holding company facility to support initial equity capital for the project, provided by Nomura and CPP Investments.Daniel Elkort, Executive Vice President at Pattern Energy, said:

“This financing is a testament to the commitment of our financing partners to the renewable energy space and to Pattern. The size and scale of both the SunZia project and this multifaceted financing show that the renewable energy space can secure attractive capital at levels previously only seen in traditional generation.”

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