Arevon Energy, an American energy developer, owner and operator, has successfully closed a $920 million financing package for its 300 megawatt (MW)/1,200 megawatt-hour (MWh) Nighthawk Energy Storage Project, currently under construction in Poway, California.
The financing package includes a $482 million debt facility arranged by CIBC as left lead arranger, alongside ING Capital, NORD/LB, Santander and Zions Bancorporation; a $169 million preferred equity investment structured to simplify the monetization of tax credits with Goldman Sachs Alternatives; and a $268 million tax credit transfer commitment with a corporate purchaser. Arevon was represented by Latham & Watkins and Sheppard. Norton Rose Fulbright and Allen Matkins served as counsel to the lenders. Milbank and Allen Matkins acted as counsel to Goldman Sachs and CG/CRC-IB served as Arevon’s tax equity advisor.
“CIBC is thrilled to have supported Arevon as left lead arranger, administrative agent, coordinating lead arranger and bookrunner on a unique financing structure for the Nighthawk Energy Storage Project,” Emma Raine, executive director, project finance at CIBC, said. “Partnering with leading renewable energy platforms like Arevon underscores CIBC’s ongoing commitment to the U.S. renewable energy sector, as we work toward enabling a more sustainable economy.”
Vikas Agrawal, managing director, and co-head of energy transition climate credit at Goldman Sachs Alternatives, said, “We are pleased to support Arevon’s Nighthawk Energy Storage Project through our climate credit strategy. This preferred equity investment reflects our commitment to providing flexible, tailored financing solutions that help accelerate the deployment of critical infrastructure. Energy storage is essential to grid reliability and the energy transition. Goldman Sach’s long history financing Arevon and Arevon’s track record as a leading developer and operator makes them an ideal partner. The Nighthawk project exemplifies the type of large-scale, high-impact investment opportunity that our strategy was designed to support, and we look forward to continuing to deploy capital and offering bespoke financing solutions that deliver both strong risk-adjusted returns and meaningful environmental benefits.”
Denise Tait, chief investment officer at Arevon, added, “Strategically aligning debt, preferred equity and transferability structures is essential to financing energy storage projects at this scale and profile. This transaction demonstrates how innovative capital solutions can unlock long-term investment in critical grid infrastructure, even amid evolving market and policy conditions. It reflects the strength of our financial partnerships and Arevon’s commitment to delivering durable, long-term value.”
