GBN Member Transaction Database

CEFC made a AU$20 million cornerstone investment in the world’s first university-issued certified climate bond, issued by Monash University. The AU$218 million climate bond, certified by the global Climate Bonds Initiative, creates an important new asset class for the financing of sustainability and clean energy projects in the university sector. Over two years, Monash University will allocate capital raised through the climate bond to a portfolio of projects that achieve certification in accordance with the standards of the Climate Bonds Initiative.

NYGB made a bridge loan commitment of US$11.0 million to conduct energy improvements, primarily through the replacement of conventional lighting equipment with cleaner, more efficient LED lighting in 18 master-metered multifamily developments in New York City. The Project includes 30 different LED technologies, and is expected to generate savings of 10% – 15% of current annual energy expenses for the building owner. NYGB financing will create a borrowing history for a relatively new structure that can be replicated with NYCHA and other New York State public housing authorities that seek to utilize private capital financing for similar types of building upgrades.

GIB committed GB£35 million of senior debt to the construction of Wheelabrator Parc Adfer, a new GB£180 million waste-to-energy plant at Deeside Industrial Park in Flintshire, North Wales.

GFO committed to invest US$2 million in wind energy power generation projects planned by Achiha Co., Ltd. Loan financing will be raised via syndicated loans. Tokyo Star Bank will act as arranger, with Saga Bank and Howa Bank as participating institutions. Using the above funds, Wakachiku Construction Co., Ltd. and Achiha Co., Ltd. will form a joint venture to construct the wind farm in collaboration with local operators. When work is complete, Hitachi Ltd. will maintain and manage the power generation facilities.

CEFC made a AU$75 million cornerstone equity commitment to Palisade Renewable Energy Fund (PREF), which is seeking to attract commitments from mid-tier and large institutional investors, to invest alongside co-investors, also managed by Palisade. These Mid-tier investors have historically had limited exposure to renewable energy investment opportunities because in many cases they lack the scale to be direct investors. The PREF, managed by Palisade Investment Partners (Palisade), has a target size of AU$500 million and invests in renewable energy projects in Australia.

PREF, one of Australia’s first dedicated renewable energy funds of significant scale, provides investors access to the Australian renewable energy sector through the acquisition and development of more than 500MW in renewable energy projects. PREF will primarily focus on large-scale solar and wind projects. It will benefit from Palisade’s comprehensive mapping of wind and solar farm development opportunities in Australia.

This transaction financed a 55MW(AC) solar farm 10km west of Parkes consisting of over 200,000 solar panels that is expected to generate enough power for about 20,500 homes. CEFC committed almost a total of almost AU$150 million in finance towards the AU$230 million total cost of the Griffith, Dubbo, and Parkes solar farms. The projects also received a total of around AU$16 million from the Australian Renewable Energy Agency (ARENA) as part of their Large-Scale Solar Funding Round.

NYGB initially provided a US$25.0 million term loan facility to PP to finance the deployment of fuel cell systems powering forklifts in distribution centers across NYS. This loan was expanded to US$45 million in 2017.The Facility will allow PP immediate access to needed capital that is currently held as cash collateral in restricted accounts, rather than waiting for it to be released over time as payments are made through sale-leasebacks arrangements with tax equity providers. NYGB’s participation in this transaction is significant because it enables PP to deploy more systems and convert more forklift fleets in a shorter amount of time than would otherwise be possible under their current financial arrangement.

This transaction constitutes NYGB’s first investment in the fuel cell industry, which is still relatively small nationally but growing at an above-market average rate. As a result, many firms in the industry experience high borrowing costs. NYGB participation in the transaction aims to address those high costs for PP and other similar companies in the sector by making otherwise restricted capital available to PP, so they can continue scaling their business, including to the levels where capital costs are expected to be significantly reduced.

CEFC’s AU$20 million Ross River investment is the CEFC’s first direct equity stake in a solar farm, sending an important signal to institutional investors about the commercial potential of greenfield clean energy developments. Palisade is taking a 50% stake. The project is underpinned by a 13-year contract with major retailer EnergyAustralia for electricity sales, the biggest single solar purchase deal signed in the country. The solar farm is sited on a disused mango plantation which has recorded high solar irradiance and is close to a grid connection point. The solar farm will cover more than 200 hectares and comprise feature some 450,000 solar panels which will use horizontal track the sun.

A debt finance commitment of up to AU$120 million from the CEFC is demonstrating the bankability of large-scale renewable energy projects which have not achieved 100 per cent energy offtake agreements through long-term contracted power purchase agreements (PPAs). The CEFC is one of the co-financiers in the development of the AU$588 million 270MW Sapphire Wind Farm between Glen Innes and Inverell in northern New South Wales.

Project developer CWP Renewables secured a 20-year feed-in-tariff from the ACT Government for 100MW of Sapphire’s output and will trade the remainder of the project’s output on a merchant basis. The 270MW Sapphire Wind Farm, located between Glen Innes and Inverell in northern NSW, will feature the latest Vestas turbine technology, as well as transformers manufactured in Australia.

In a boost to the local community, the project will contribute to a Community Fund at the rate of AU$2,500 per turbine per year over the life of the project, to support local community interest groups and activities. Community members, local council and project representatives will jointly manage the Community Fund.

NY Green Bank has entered into two transactions with SolarCity Corporation to accelerate the deployment of solar projects across New York State. The two transactions fund, respectively, a static pool of SolarCity’s existing solar assets (US$20 million revolving credit facility), and new solar projects ($US30 million term loan facility) – as one provides a five-year non-recourse term loan, and the other provides construction financing for SolarCity’s upcoming solar projects in New York. The post-construction term loan facility was arranged by Bank of America Merrill Lynch, a global corporate and investment bank engaged by SolarCity. SolarCity is the largest residential solar provider in NY.

NYGB’s participation provides SolarCity additional financial flexibility, and helps to strengthen the medium-term lending market as an alternative to refinancing through the traditional asset-backed security market or private placement market. This transaction demonstrates NYGB’s continued success in enhancing liquidity, decreasing the cost of capital for solar developers and installers, and helping reduce the cost of solar power to customers.

GFO committed to invest US$0.7 million in a solar power PV generation project planned by Oratte Niigata Community Energy Council. This is the first Regional Support Investment made by GFO. The Council was launched in December 2014 to promote the take-up of renewable energy with a focus on the local community, following a study group set up by Niigata City into regional area power generation with the participation of local residents. This project is a small-scale distributed solar PV power generation business, which will use ground sites, the rooftops of local public buildings and private companies, as well as factory rooftops and vacant land in Niigata.

GIB agreed to part-fund the biggest non-Private Finance Initiative streetlighting project in the UK to date. It is providing Kent County Council with a GB£10.2 million Green Loan to help finance the local authority’s GB£40 million streetlight conversion programme. The project involves the replacement of 120,000 traditional streetlights with energy-saving LED alternatives and the installation of a central management system, increasing the efficiency of the local authority’s lighting stock while making it easier to manage.

GIB committed GB£28 million of senior debt finance to a new GB£142 million waste-to-energy plant at Millerhill in Midlothian, near Edinburgh, Scotland. GIB joins a lending club that includes Investec, Siemens Bank and Credit Agricole. The plant will also be combined heat and power (CHP)-ready, meaning it has the potential to supply excess heat from its operations to nearby homes and businesses.

NYGB and SPFC co-invested in a Lease in the amount of approximately US$12.9 million – including approximately US$8.7 million from NYGB and approximately US$4.2 million from SPFC – to finance energy improvements in a project that will replace existing infrastructure in nine schools and an administrative building in Northport District. The project includes, but is not limited to, lighting retrofits, building envelope improvements, energy management systems, water conservation units, and ventilator refurbishments. The Project is expected to save the District ~US$1.1 million per year, with a portion of those savings to be used for lease payments and the remainder going directly to the District.

GFO committed to invest US$1 million in a solar power generation project in Tomioka-machi, Fukushima Prefecture. Loan financing to support the project will be raised via regional financial institutions. The construction of the power plant and its day-to-day operation will be undertaken in collaboration with local businesses.

GFO committed to invest US$3.9 million in woody biomass gasification and power generation project developed by Koyo Electric Co., Ltd. This is the collaboration between Koyo Electric Co., Ltd. and local businesses in Kushima-city, Miyazaki Prefecture for small-scale combined heat and power (< 2,000 kW power generation), making practical use of unused biomass resources, principally thinned woods, left in the forest areas. The participation of GFO will encourage other financial institutions to provide financing for this project.

CEFC and Commonwealth Bank have launched a new AU$100 million Energy Efficient Equipment Finance program to provide Australian businesses and not-for-profits with lower cost finance for a wide range of assets that meet certain energy efficiency standards. The new program enables businesses to benefit from reduced energy and fuel costs, while also lowering their carbon emissions. The finance will provide a 0.70 per cent discount on the bank’s standard asset finance rate for assets ranging of AU$10,000 to AU$5 million (up to 100% financing of equipment cost), where the asset’s technologies meet the CEFC’s investment guidelines. Eligible investments include a broad range of fuel efficient vehicles, energy efficient lighting and fittings, farm machinery, commercial lighting and rooftop solar panels. Lending is structured to meet borrower cash flows.

GFO committed to invest US$10 million as Limited Partner in the “Hokkaido and Aomori Wind Power Generation Fund, Limited Partnership (Provisional)”, managed by Japan Wind Development Co., Ltd. The Fund invests in wind power renewable energy businesses which contribute to regional regeneration in Hokkaido and Aomori Prefecture, areas with strong potential for wind power generation. The Fund is structured so that the Organization and investors in the Fund are Limited Liability Partners (hereinafter “LPs”).

GFO, regional financial institutions, and JWD will invest capital to establish the Fund, with JWD acting as General Partner with unlimited liability. Shinsei Securities Co., Ltd. will manages private placements for the Fund and will bring in new LP investors. The targeted prospective size of the fund is a maximum of five billion yen, with investment sought from regional financial institutions and other sources. As far as GFO and JWD are aware, the structure of this fund, investing in wind energy businesses at a developmental stage, is the first of its kind in Japan.

CEFC and Investa Office Management (Investa) joined forces to push the boundaries of energy efficiency in commercial property, reinforced by Investa’s market-leading commitment to Science Based Targets. CEFC invested AU$110 million in equity as part of a AU$600 million capital raising for the AU$4.1 billion Investa Commercial Property Fund. This transaction established a landmark co-operation agreement that will promote the increased uptake of energy efficiency design principles and technologies in the built environment.

GIB committed GB£80 million of senior debt to the construction of a new GB£340 million large-scale combined heat and power energy from waste facility near Sittingbourne in Kent. The plant will generate electricity for the grid and heat for Kemsley Paper Mill in Kent. The project developer, Wheelabrator Technologies Inc, secured more than GB£300 million of debt from a lending club that includes GIB alongside Barclays, Bank of Tokyo-Mitsubishi UFJ (BTMU), Natixis and Investec. The plant is the first large-scale energy from waste facility supported by the Contract for Difference mechanism.

CEFC is lending unlisted property fund manager Quintessential Equity AU$68 million to ‘stretch’ the building design of the AU$120 million 14-level commercial office tower. It will be built to a 5.5 star standard under the National Australian Built Environment Rating System (NABERS) base building energy rating. This transaction financed the construction of Victoria’s first 5.5-star NABERS building outside the Melbourne CBD.

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.