GBN Member Transaction Database

CEFC allocated up to AU$100 million of equity to an investment strategy aimed at accelerating the development of Australian renewable energy projects valued at AU$1 billion. The strategy involves funds managed by Palisade Investment Partners. Palisades is committing up to AU$400 million of additional equity through a combination of managed funds and its Direct Investment Mandate clients. Among others, Palisade’s current Direct Investment Mandate clients include VicSuper, LGIAsuper and Qantas Super. NAB and Commonwealth Bank will work with the CEFC and Palisade to provide debt financing for these renewable energy projects. Through this strategy, CEFC is looking to attract investors at an earlier stage of project development to more effectively accelerate the construction of commercially-viable projects.

NYGB provided a US$5.0 million senior-secured revolving credit facility to Sealed Inc. that will support financing for up to US$7.5 million in energy efficiency upgrades for up to 400 homeowners in New York. Sealed is a NYS-based energy software company that provides home efficiency upgrades – from new insulation, to sealing air leaks, to installing new boilers and furnaces – utilizing a first-of-kind, user friendly financing solution. NYGB’s US$5.0 million revolving credit facility will enable Sealed to introduce a new financial product for homeowners interested in making their residences more comfortable as well as more energy efficient.

This transaction type is replicable for other participants in the energy efficiency market in NYS – specifically smaller developers with early marketplace success but limited scale to date – providing precedent for further expansion of residential energy efficiency financing products.

CEFC committed AU$90 million as a cornerstone investor in Westpac’s first climate bond issuance. The AU$500 million Westpac Climate Bond has been certified by the Climate Bonds Initiative, and will finance a AU$1 billion Australian-based clean energy portfolio, including low carbon commercial buildings.

CEFC committed AU$200 million to the Westpac Energy Efficient Financing Program to support small businesses across Australia that want to invest in solar, energy efficient technologies, and low emissions vehicles. The Westpac Energy Efficient Financing Program is tailored to suit a broad range of Westpac’s customers, including health and aged care, agribusiness, and education, as well as state and local government.

The program provides customers with a 0.7 per cent discount on finance for investment in solar, energy efficient technologies and low emissions vehicles. Finance is available for projects of more than AU$15,000 over periods of up to 10 years. Up to 100 per cent of value of the equipment can be financed through the program. Finance leases, commercial loans and commercial hire purchase facilities are available through the program. Financing is structured over the life extectancy of the asset.

BQ Energy (“BQ”) is a renewable energy project developer specializing in landfill and brownfield site redevelopment.
BQ and NY Green Bank have closed on the first transaction of an anticipated US$30.0 million portfolio that will utilize the same standardized approach for upcoming projects. In this arrangement, BQ will receive a $USD 1.5 million construction loan to finance a 1.37 megawatt solar project located on a closed municipal landfill located in Patterson, NY. Upon completion, the construction loan will be refinanced with a term loan provided by NYGB. Solar power from this project will be used by a Hudson Valley institution to power its facilities using New York State’s remote net metering.

NYGB’s participation in the Project – and in similar developments in the proposed portfolio arrangement – will help expand financing opportunities for smaller (less than 10.0 MW) solar systems by fostering standardization in several respects. First, this portfolio of projects will use the same approach – including BQ’s retaining the same balance of plant contractorfor the majority of the portfolio projects – along with a streamlined, uniform approach to developing contracts and using the same equipment in each portfolio project. Second, the underwriting process will be standardized, specifically as relates to remote net metering, which can be replicated for other transactions, including those with counterparties that do not have a rating provided by a rating agency.

CEFC invested AU$20 million in the first certified green bond transaction of its type in the Australian market, linked to solar PV and renewable energy assets. The CEFC investment is part of a new securitisation issued by FlexiGroup Limited, which includes a AU$50 million ‘green’ tranche, which has been certified by the global Climate Bonds Initiative. This was the first certified green bond transaction securitised to renewable energy assets in the Australian market. In another market first, the FlexiGroup green tranche also achieved a relatively better price than the comparable uncertified tranche.

Mosaic is a financial technology company which, utilizing a third party contractor network, provides homeowners with loans to finance the installation of solar systems on their homes. At the request of Guggenheim Partners, a global investment and advisory financial services firm, and in partnership with Germany’s DZ BANK, NYGB participated in a US$110.0 million senior secured credit facility in April 2016. Since the close of the original credit facility, Mosaic’s loan originations are occurring at a faster pace nationally than previously anticipated and, simultaneously, Mosaic and its network of developers are increasingly focused on NYS. Following the success of Mosaic’s loan product and the strong performance of the loans within the credit facility, Mosaic sought increased credit availability to satisfy demand for their loan product. Mosaic requested NYGB and private capital providers to participate in a US$130.0 million increase of the original facility, bringing the total size to US$240.0 million (the “Credit Facility”), with an additional US$40.0 million from NYGB and $90.0 million from BNP Paribas, a global bank and financial services company.

GFO committed to invest US$7 million in the Kyushu Geothermal Power Generation Fund (Kyushu Renewable Energy Investment Business Limited Partnership), which is managed by Astmax Trading Inc. The Fund will invest in geothermal power, hot springs power, and solar power renewable energy businesses in Kyushu. The Fund will be established with an initial commitment of US$14.1 million, comprising an investment of US$7 million by GFO, and US$7.01 million by Astmax Trading, Inc. and Astmax Co., Ltd. Astmax Trading Inc., will manage the Fund as General Partner with unlimited liability (hereinafter referred to as the “GP”). It will look to bring in an LP investor (Limited Partner) to invest a further US$1 million.

GFO committed to invest US$5.9 million in a wind energy power generation project planned by Japan Wind Development Co., Ltd. This project aims to introduce renewable energy in Kakegawa, Shizuoka prefecture, in collaboration with local industry, leveraging Japan Wind Development Co., Ltd.’s accumulated experience and expertise in the wind energy business.

Japan Wind Development Co., Ltd., as the principal sponsor, will contribute US$6.1 million, and GFO will invest US$5.9 million, in the Kakegawa Wind Development Co., Ltd., which is the SPC of this project. The SPC will utilize the above funds to develop a wind farm with the help of regional construction companies, focusing on EPC. In addition, the electricity generated through this project will be sold to Chubu Electric Power. Loan financing will be raised from financial institutions.

GFO committed to invest US$6 million in a solar power generation project planned by Koyo Electric Co., Ltd. Koyo Electric Co., Ltd. is contributing US$5.1 million, and JFE Electric Co., Ltd. is contributing US$1 million. US$19.8 million will be raised via syndicated loans, with regional financial institutions invited to participate. Using the above funds, JFE Electric Co., Ltd. will construct a solar power plant in collaboration with local operators. When work is complete, Koyo Electric Co., Ltd. and local companies will maintain and manage the power generation facilities.

GIB provided a Green Loan to help Stirling Council save GB£31 million over the next 30 years by installing energy saving streetlights. Stirling Council is installing 12,000 LED lamps and 4,000 columns (lampposts). The council borrowed GB£9.87 million over four financial years using GIB’s Green Loan.

CEFC provided AU$8 million finance to an innovative Australian company which is successfully commercialising CSIRO research to help drive renewable energy in Australia and overseas. Windlab Limited is a Canberra-based global wind energy development company established in 2003 as a spin-out from the CSIRO. As a result of the CEFC’s AU$8 million commitment, Windlab will have additional access to working capital as it seeks to expand its business.

C-PACE enables owners of eligible commercial and industrial buildings to finance up to 100% of energy efficiency, renewable energy, water conservation, environmental health and safety eligible improvements. Financing is provided by private capital providers at competitive rates with repayment terms consistent with the useful life of the improvements, generally up to 25 years.C-PACE is sponsored by the Bank and administered by Sustainable Real Estate Solutions. Commercial and industrial properties that are eligible for C-PACE financing include: Office buildings, Manufacturing facilities, Agricultural, Non-profit, Multifamily (5+ units). More information is available on the program website: https://ri-cpace.com/.

The UK Green Investment Bank Offshore Wind Fund and associated parallel funds (the Fund) and funds managed by BlackRock acquired GLID Wind Farms TopCo Limited (GLID) from Centrica and EIG Global Energy Partners (EIG) in a transaction worth GB£423 million. As a result of the deal, the Fund owns a 61% stake in the 194 MW, 54 turbine Lynn and Inner Dowsing offshore wind farms, located off the coast of Lincolnshire. The BlackRock-managed funds own the remaining 39% of the projects. The transaction marks the first time that operating offshore wind farms in the UK have been 100% owned by non-utility investors.

An historic installation in the United States, the first Archimedes Screw Generator was installed by New England Hydropower Company at the Hanover Pond Dam on the Quinnipiac River in Meriden in late 2016. CT Green Bank provided US$3.1 in debt for construction and financing costs (which was raised through clean renewable energy bonds, CREBs) and US$300,000 of working capital through an existing working capital facility agreement with Webster Bank.

Launched in March 2013 and running through FY15, the CT Solar Loan was a US$10 million pilot public-private partnership between CT Green Bank and Sungage Financial, with support from ARRA funds. The partnership enabled Sungage Financial to offer the CT Solar Loan, with up to US$55,000 per loan with 15-year maturity terms and 6.49% interest rates (including 0.25% ACH payment benefit). This allowed homeowners to benefit from 30% Investment Tax Credit (ITC) accessible to those who own PV panels.

The CT Solar Loan program was possible through credit enhancements (i.e.,US $300,000 loan loss reserve and US$168,000 interest rate buy-downs from repurposed American Recovery and Reinvestment Act funds) in combination with a US$5 million warehouse of funds and US$1 million of subordinated debt from the Connecticut Green Bank. It resulted in the first crowd-funded solar loan program in the country when US$1M of the loan portfolio was purchased by crowd-funding project finance firms Mosaic and Mission Markets and another US$2.6M was purchased by the Reinvestment Fund (a CDFI). And in late 2015, Sungage Financial graduated to a US$100 million pool of capital from the Digital Federal Credit Union, without further Green Bank support, to enable citizens to own solar PV systems installed on their homes.

NYGB has provided two letters of credit totaling US$5.5 million to New York-based Energy Improvement Corporation (“EIC”), a not-for-profit, local development corporation formed to promote and facilitate meaningful energy savings through energy efficiency and renewable generation improvements to existing properties throughout New York State.

EIC’s Energize NY Finance product uses the Property Assessed Clean Energy (“PACE”) loan mechanism to finance qualified energy improvements to buildings for commercial property owners and not-for-profits located in participating NYS municipalities. Under the PACE structure, commercial and not-for-profit real estate owners can effectively borrow to finance energy improvements to their properties and repay this debt through additional finance charges that are included in the property tax bills collected by the participating municipalities. The letters of credit are expected to accelerate the expansion of EIC’s municipal membership, resulting in more than 550 PACE projects. This represents ~150.5 million in total project costs.

GIB invested GB£100 million in a lending program throgh Temporis to support a total of GB£200 million in investment in onshore renewables. The only GIB investment made through the Temporis fund as of year-end 2016 is in the 52.9MW Blackcraig wind farm. GIB and KKR have committed GB£82.7 million of senior debt to the consented 52.9MW Blackcraig wind farm via Temporis Capital LLP – GIB is contributing GB£49.5 million of the total finance package. The 23-turbine project, located in Dumfries and Galloway, is owned by project sponsor Blue Energy.

CEFC committed a loan of up to AU$9.1 million to the University of Melbourne to accelerate initiatives that will help it improve its sustainability in its push towards carbon neutral operations. The University of Melbourne is undertaking projects involving a range of energy efficient technologies and innovative renewable technologies which are expected to reduce grid electricity use by about 8%. The CEFC is financing the University of Melbourne through a staged direct loan facility that is designed to work with the University’s rollout of its sustainability upgrade plans.This transaction was the first CEFC university clean energy financing transaction.

CEFC committed AU$67 million as part of a five-year, AU$276 million senior secured debt financing to what will be Australia’s third largest wind farm, at Ararat in Victoria. The wind farm has secured a AU$276 million debt financing package through a financing consortium comprising Sumitomo Mitsui Banking Corporation (SMBC), Canada’s Export Credit Agency, Export Development Canada (EDC) and the CEFC. This is the first large-scale hybrid contracted and merchant wind farm in Australia. The Ararat project benefits from a power purchase agreement (PPA) with the Australian Capital Territory Government, guaranteeing the purchase of approximately 40 per cent of the energy produced at the site. The PPA was awarded under the ACT’s wind auction in February 2015.

CEFC provided up to AU$100 million as a cornerstone investment in a new equity fund for bioenergy and energy from waste. The fund is set to benefit a broad cross-section of the economy including local government, mining, forestry and agriculture. The Australian Bioenergy Fund is targeting equity investments in projects from AU$2 million to AU$100 million, ranging from small-scale anaerobic digestion to mid-scale energy from waste developments. It is Australia’s first waste and bioenergy investment fund.

CEFC committed up to AU$20 million in cornerstone debt finance for the development of the Barcaldine Solar Farm in Central Queensland. The AU$69 million 20MW AC (25MW DC) solar farm is expected to generate enough power each year to satisfy the needs of around 5,300 households. The Barcaldine Solar Farm’s location on the fringe of the National Energy Market grid will significantly reduce network losses experienced by the current transmission feed from Clermont, which is about 660 kilometres to the east. In addition, it will demonstrate how building new capacity around the grid can lead to significant saving in grid expansion and upgrade costs.

The experience developed from building a solar PV farm in a fringe-of-grid area will demonstrate the potential for solar projects to increase the reliability and quality of power at fringe-of-grid locations. This experience can also provide useful lessons for the future rollout of off-grid remote area solar PV projects, such as those serving remote communities and mining operations.

GIB committed GB£47 million of equity to a new GB£107 million Energy from Waste (EfW) plant in Belfast, Northern Ireland. The facility will be located adjacent to Bombardier’s wing facility in the city’s Harbour Estate. GIB has made its investment in the 14.85 MW plant as part of a joint venture – Full Circle Generation – with developer RiverRidge Energy Limited, Equitix and P3P Partners.

The plant, which will be fuelled by feedstock derived from household and commercial waste, is the largest EfW project to be financed in Northern Ireland. A long-term feedstock contract has been agreed with waste management company Pioneer Fuels and a Power Purchase Agreement has been signed with Bombardier.

The City of Melbourne is undertaking a AU$30 million program of clean energy initiatives to help it reach its goal of zero net emissions by 2020, using finance from the CEFC. The CEFC’s finance is helping the City to accelerate its program of works and reduce its energy use and carbon emissions, while also encouraging commercial property owners to implement their own energy saving initiatives.

GIB joined Siemens Financial Services, Macquarie Capital and project developer RWE Innogy as 25% joint equity partners in the GB£1.5 billion Galloper offshore wind farm. The joint venture has also secured GB£1.37 billion of debt facilities from a consortium of 12 commercial banks plus the European Investment Bank (EIB), making it the UK’s first construction-ready offshore wind project finance deal.