AES’ clean energy business to construct 3 GW of new renewable energy projects across the United States
AES Secures $1.7 Billion in Warehouse Facility Financing to Advance Construction of Renewable Energy Projects
Arlington, VA (November 10, 2022) – The AES Corporation’s (NYSE: AES) US-based clean energy business today announced that it has entered into a $1.7 billion warehouse credit facility which will advance the construction of 3 GW of renewable energy projects across nine states. This financing arrangement is the largest construction warehouse facility for domestic renewable projects and builds on the initial $700 million warehouse credit facility established in January 2022.
AES’ clean energy business will use the proceeds to fund the construction of solar, solar plus storage, wind and standalone battery storage projects that are expected to be completed and begin operation within the next three years. The projects are already contracted to deliver clean energy to a number of customers. AES’ US renewables portfolio currently includes 4.7 GW of operating assets and 5.2 GW of projects with signed power purchase agreements, which are either under construction today or will start construction in the coming years.
“With the passage of the Inflation Reduction Act, the renewable energy sector and AES have entered a new era of growth. This financing arrangement will allow us to build out our current and future backlog of clean generation projects across the US,” said James Marshall, Chief Financial Officer for AES’ clean energy business. “The financing arrangement will allow us to ramp up the construction of our clean energy projects in several key states that include a diverse portfolio of assets and technologies.”
“CIBC is proud to support our clients’ sustainability ambitions, providing AES’ clean energy team with capital to support its continued growth in the coming years,” said James Wright, Head of US Project Finance and Infrastructure at CIBC. “AES has one of the leading renewable energy development pipelines in the US, and we are excited to be part of its evolution within the renewable energy space.”
CIBC arranged the transaction and served as administrative agent for the three-year credit facility, which is the largest warehouse structured deal in AES’ history. In addition to CIBC, the financing included 17 other creditors: Cadence Bank, Credit Agricole, DNB, HSBC, KeyBank, Mizuho, MUFG, National Bank of Canada, Natixis, Santander, Silicon Valley Bank, Societe Generale, Standard Chartered, Sumitomo Mitsui Banking Corp., Truist Bank, Wells Fargo and Zions Bank.
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company, accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit AES here.
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