Greenbacker Renewable Energy Company LLC, an asset manager and sponsor of investment vehicles focused on renewable energy, completed the closing of a new $150 million senior secured sustainability revolving credit facility.
The facility is Greenbacker’s first financing structured as a sustainability loan, a form of financing specifically used to support projects with environmental and social benefits.
“We’re committed to empowering a sustainable world, driving a just energy transition, and enabling communities across the country to participate in the green economy,” said Armand Dehaney, vice president of Investments at GREC. “This sustainability revolving credit facility reaffirms Greenbacker’s ability to make clean energy investments, create equitable partnerships in our communities, and prioritize responsible stewardship of the land.”
Fifth Third Bank served as the administrative agent, with Fifth Third Bank, KeyBanc Capital Markets, and Wells Fargo serving as joint lead arrangers. Wells Fargo served as the Sustainability Structuring Agent on this sustainable finance transaction for Greenbacker and supported the company in establishing its inaugural Sustainability Loan Framework. The debt was issued under both Green Loan Principles and Social Loan Principles, which aim to facilitate environmentally sustainable and socially inclusive economic activity.
“We are pleased to support Greenbacker’s inaugural sustainability loan and their ongoing commitment to renewable energy and positive social impact,” said Alok Garg, head of Renewables & Asset Finance, Wells Fargo Corporate & Investment Bank.
Greenbacker says the company will deploy borrowings from the credit facility into investments that include renewable energy generation, battery storage, energy efficiency, resource stewardship and community solar projects serving under-resourced communities.
This corporate revolving credit facility replaces a $40 million letter of credit facility. Along with substantially greater borrowing capacity, the company says that the new revolving credit facility provides enhanced flexibility for Greenbacker’s sustainable investment, as the facility is structured to issue letters of credit or be drawn as cash.
Greenbacker’s fleet of clean energy projects comprises nearly 2.9 gigawatts of generating capacity. Since 2016, Greenbacker’s real assets have produced over 4.9 million megawatt-hours of clean energy, abating more than 3.5 million metric tons of carbon. Today these projects support over 5,200 green jobs.
Greenbacker Renewable Energy Company seeks to invest in projects that sell clean power under long-term contract to counterparties such as utilities, municipalities and corporations.