Aypa Power, a Blackstone portfolio company and a developer and operator of utility-scale energy storage and hybrid renewable energy projects, closed a $190 million financing package for the Bypass Battery Energy Storage System (BESS) project.
The financing package includes a $68 million construction-to-term loan and a $91 million tax equity bridge loan (TEBL), bringing total construction financing to $159 million. Additionally, $31 million in letters of credit were issued, with $26 million designated for project-specific needs. Morgan Stanley Renewables committed $94 million in tax equity financing through a hybrid partnership flip structure.
The financing was provided by SMBC (also serving as administrative agent and green loan coordinator) and Santander as coordinating lead arrangers, with Siemens Financial Services as joint lead arranger.
“This financing milestone highlights Aypa Power’s ability to deliver projects that set new standards in the market,” Bill Nguyen, executive vice president of finance at Aypa Power, said. “As one of the first fully contracted energy storage projects in ERCOT, Bypass BESS demonstrates how innovative financing structures and strong partnerships can deliver critical infrastructure to meet the region’s growing power needs.”
“We are excited to partner with Aypa Power and Blackstone on this innovative ERCOT BESS project and continue building grid infrastructure for the growing electrification needs of the U.S.,” Jorge Iragorri, head of renewable energy investments at Morgan Stanley, said.
