Greenbacker Renewable Energy Company, a climate-focused investment manager and independent power producer, closed a new $150 million senior secured sustainability revolving credit facility.
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,” Armand Dehaney, vice president of investments at Greenbacker Renewable Energy Company, said. “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.”
In addition to serving as sustainability structuring agent on this sustainable finance transaction, Wells Fargo supported the Greenbacker Renewable Energy 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,” Alok Garg, head of renewables and asset finance for 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 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.
