DSD Renewables, a business backed by BlackRock Real Assets’ Global Renewable Power platform and GE Renewable Energy and a provider of customized solar PV energy and energy storage solutions, secured $140 million in pre-notice to proceed (NTP) credit facilities to support solar projects in late-stage development.
The capital will support the continued development of DSD’s late-stage development pipeline, totaling 205 MW across California, Illinois, Maine, Massachusetts, Minnesota, New York, Vermont, and Virginia. The pipeline also features a variety of community solar projects, which will benefit from robust state incentive programs that promote distributed renewable energy assets.
The funding arrangement was led by Santander Corporate & Investment Banking (Santander CIB), with HSBC USA Inc. (HSBC) and Rabobank Group (Rabobank) acting as joint lead arrangers. It includes a two-year, $100 million commitment for development financing that can be used to capitalize projects that have yet to reach the construction phase, and a two-year, $40 million equipment facility allocated for bulk orders of components, such as modules, inverters and batteries.
Once the projects in the development phase receive full NTP status, they will be further financed via DSD’s construction facility with Rabobank, Santander and others that has been in place since 2020.
“This deal is unique for DSD and fits well within our go-to-market channels,” said Akash Patel, DSD’s Vice President of Underwriting. “It aligns with our equipment procurement strategy, allows us to get solar projects off the ground faster by providing short-term financial support before construction begins, and helps us manage capital in a manner that allows us to scale our platform more efficiently and effectively.”
According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022.
Vena Energy, an independent solar power producer, recently secured a JPY16.9 billion (~$121 million) green loan for the 53 MW Kasama solar project. MUFG Bank led the JPY16.9 billion (~$121 million) financing arrangement with co-financing by Joyo Bank in Japan.
