SB Energy Global, a subsidiary of SoftBank Group Corp., and a renewable energy project developer secured $600 million equity investment from funds managed by the Infrastructure and Power strategy of Ares Management Corporation (Ares) to help expand its portfolio of solar and storage projects.
The majority of the financing is committed through Funds of Ares Management, with the balance expected to come from co-investors, including capital from SB Energy, SoftBank Group’s U.S. Climate Infrastructure Technology platform.
Michel Combes, CEO of SoftBank Group International, stated, “SoftBank launched SB Energy to accelerate access to reliable, cost-effective, renewable energy. Combining AI and technology with renewable deployment at scale is critical to the energy transformation and benefits people across the globe. Our new investment from Ares brings together Ares’ climate infrastructure experience, SoftBank’s AI and technology ecosystem, and SB Energy’s track record of execution into a single platform to deliver flexible renewable energy at scale.”
SB Energy has grown its Climate Infra-Tech platform with plans to deliver 10 GW of renewable energy and storage projects in operation or under construction by the end of 2025.
Since launching in the U.S. market in 2019, the company has completed development of, financed, and started construction on nearly 1.7 GW of utility-scale solar projects, of which 1.3 GW are currently providing clean, reliable energy to Texas and California.
In addition to capital from SoftBank and Ares, SB Energy has established partnerships with major financial institutions to secure more than $4 billion in tax equity and project financing since inception to develop and build renewable projects and make further investments in the clean energy transition.
Milbank served as outside counsel to SB Energy, Kirkland & Ellis served as outside counsel to the Ares-managed funds, and Morrison & Foerster served as outside counsel to SoftBank on the transaction.
According to Mercom Research, in October 2021, Adani Green Energy Limited (AGEL), a solar project developer, acquired SB Energy India at an enterprise valuation of $3.5 billion.