Fundamental Renewables, the clean energy investment arm of Fundamental Advisors, has secured a $400 million credit facility to support its growing investment strategy in solar energy assets. The financing was provided by Delaware Life Insurance Company, a Group 1001 company, which also acted as the arranger of the facility. Other lenders include CDPQ American Fixed Income V Inc., a wholly owned subsidiary of CDPQ, and East West Bank.
The facility provides Fundamental Renewables with additional resources to support long-term growth, build on its solar business, invest in renewable and clean energy assets, and provide flexible financing solutions to leading clean energy developers.
“We are pleased to build on our longstanding relationships with our institutional financing partners to create new partnerships that will allow us to invest more in solar energy assets while supporting the businesses that are spearheading the energy transition to a lower carbon economy,” said Ryan Keane, Managing Director at Fundamental. “This financing will help provide creative and flexible capital solutions as we continue to differentiate our platform as the partner of choice for innovative, industry-leading renewable energy developers across the country.”
“We are pleased to continue our partnership with Fundamental and look forward to playing an important role in their continued growth as they create innovative clean energy financial solutions,” said Andrew Kenney, Chief Investment Officer of Delaware Life. “This credit facility represents our fourth financing for Fundamental. It will provide additional capital to enhance their ability to offer more efficient and flexible financing solutions across a broad array of renewable energy assets. This project continues Delaware Life and Group 1001’s commitment to ESG initiatives around the country.”
In July, Opdenergy, an independent renewable energy producer, closed a €250 million (~$254 million) debt facility by issuing new senior bonds to EIG, an investor in energy and infrastructure sectors, and Generali Global Infrastructure (CGLI).
According to Mercom’s recently released 1H and Q2 2022 report, solar debt financing activity in 1H 2022 was $5 billion in 30 deals, a 39% lower compared to $8.2 billion in 32 deals in 1H 2021.