Company’s first sustainability loan reaffirms its mission, further strengthens its investment in the clean energy transition
PVTIME - Greenbacker Renewable Energy Company LLC (“GREC” or “Greenbacker”), a leading climate-focused investment manager and independent power producer, today announced that it completed the closing of a new $150.0 million senior secured sustainability revolving credit facility. The closing of the credit facility reaffirms Greenbacker’s position among renewable energy companies as a well-capitalized owner and operator with access to capital through market cycles.
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. 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 was the sustainability structuring agent.
“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, VP 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.”
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 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 dedicated corporate revolving credit facility replaces a $40 million letter of credit facility. Along with substantially greater borrowing capacity, 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 GW of generating capacity. Since 2016, Greenbacker’s real assets have produced over 4.9 million megawatt-hours1 of clean energy, abating more than 3.5 million metric tons of carbon.2 Today these projects support over 5,200 green jobs.3
1 Data is as of June 30, 2022.
2 EPA Greenhouse Gas Equivalencies Calculator. Data is as of June 30, 2022.
3 Green jobs are calculated from the International Renewable Energy Agency's measurement that one megawatt of renewable power supports 3.8 jobs. Data is as of June 30, 2022.