AES’ US-based Clean Energy unit secures optimized funding for the construction of 2 GW of clean energy projects in US
The AES Corporation’s (NYSE: AES) Clean Energy business unit today announced that it secured a $700 million revolving credit facility to finance construction of 2 GW of clean energy generation and storage capacity across nine states.
The credit facility was established as a flexible source of capital to finance construction across the clean energy division’s growing backlog of solar and battery storage projects. The clean energy projects range up to 375 MW in size and are located in Arizona, California, Colorado, Maine, Michigan, New York, Rhode Island, Utah, and Virginia. AES’ US renewables portfolio currently includes 4.5 GW of operating assets and 4.9 GW of signed power purchase agreements.
CIBC led 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 deal includes 13 other creditors: Cadence Bank, DNB, HSBC, KeyBank, MUFG, National Bank of Canada, Santander, Silicon Valley Bank, Societe Generale, Sumitomo Mitsui Banking Corp., Truist, Wells Fargo, and Zions Bank.
“This financing arrangement aligns well with our current business needs and growth strategy to ramp up our clean energy projects in key markets and optimize our capital costs across a diverse portfolio of assets spanning multiple technologies and commercial structures,” said James Marshall, AES Clean Energy Chief Financial Officer. “The arrangement will also provide a bridge to longer-term financing for these projects as they become operational."
“CIBC was delighted to lead the structuring and execution of this important facility for AES’ Clean Energy business unit,” said James Wright, Head of the US Project Finance team at CIBC. “It provides the company with a flexible source of capital that will support the continued growth of the business in the coming years. AES’ Clean Energy team has one of the most impressive development pipelines in the US renewable energy space, and we’re excited to be a part of that journey.”
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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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