January 23, 2023
Aypa Power Secures $320M Corporate Credit Facility
Aypa Power (“Aypa”), a Blackstone portfolio company that develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects, has closed $320 million of letter of credit and revolving credit facilities led by Banco Santander, Investec, and Nomura as Coordinating Lead Arrangers and Joint Bookrunners. The facility will support the development and commercialization of Aypa’s 15+ GW project pipeline across North America.
The facilities are comprised of a $250 million letter of credit facility and a $70 million revolving credit facility, providing Aypa with development capital and credit support to secure obligations principally relating to power purchase agreements and other revenue contracts, as well as interconnection agreements.
“We greatly appreciate the institutional support of our lead lenders who worked in partnership with Aypa,” said Marc Atlas, Chief Financial Officer of Aypa Power. “This facility positions our platform to continue our market leading deployment of battery storage and hybrid systems, while providing the lenders with significant cash flow and asset coverage.”
“This facility accelerates Aypa’s growth and the advancement of our pipeline, which aligns well with the company’s goal of delivering over 1,500 megawatts of battery storage and hybrid projects to notice-to-proceed in the next 24 months,” said Aypa Power CEO, Moe Hajabed. “We are thrilled to partner with such esteemed financial institutions as we continue to execute on our mission.”
Vinod Mukani, Global Head of Nomura’s Infrastructure and Power Business (“IPB”) commented, “We are pleased to leverage our global expertise to provide a bespoke financing solution to support Aypa’s development. Providing superior execution in growing sectors – like the energy transition sectors – remain core to Nomura, and supporting strong sponsors like Aypa with this financing fits seamlessly within these strategic initiatives.”
“Nomura is happy to support and provide liquidity to Aypa as it continues to develop its large pipeline of storage and solar projects in the US,” said Alain Halimi, Executive Director of Nomura’s IPB. “Nomura is always pleased to develop financing solutions for clients, like Aypa, who is a transformative player in the energy transition currently taking place in the US and globally.”
“We are very proud to have supported Aypa in this pivotal moment of its corporate development and capital raising process,” said Nuno Andrade, Managing Director and Head of Structured Finance US at Santander’s Corporate & Investment Banking. “Aypa has positioned itself as an innovative technology and project developer that will deliver clean energy and jobs across the United States with its utility scale battery storage and hybrid renewable energy projects, which are critical for the economy and the energy transition.”
“We have seen a lot of activity in this space and are glad to partner with the outstanding teams at Aypa and Blackstone on this landmark financing,” said Fred Petit, Co-Head of Investec’s North American Power & Infrastructure group. “Investec continues to be a leader in the structuring of innovative transactions in the North American energy space and this financing aligns perfectly with the bank’s strategy around ESG”.
About Aypa Power
Aypa Power is a Blackstone portfolio company that develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects. As an independent power producer, Aypa was founded with the purpose of reducing reliance on fossil fuels and making a positive impact in the fight against climate change, while improving grid reliability and resiliency. Aypa has been at the forefront of energy storage development since their first energy storage project came online in 2018. The company currently has more than 15GW in development across North America.
Nomura is a global financial services group with an integrated network spanning over 30 countries and regions. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Investment Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.
Santander’s Corporate & Investment Banking division supports Corporate, FiG (financial institutions group), Financial Sponsors and Institutional customers, offering tailored services and value-added wholesale products, suited to their complexity and sophistication. With over 5,800 professionals in 18 countries located around the globe, the Santander CIB business and the Global Debt Financing team supports its Clients’ renewable energy financing needs through an experienced, knowledgeable and integrated product team that provide our Clients with access to a full range of debt sources and capital structures.
Investec Power and Infrastructure Finance is part of a strong global franchise, with teams across the US, UK, Europe, South Africa and India. Investec partners with private, institutional, and corporate clients, offering international banking, investments, and wealth management services in two principal markets, South Africa, and the UK, as well as certain other countries. The Group was established in 1974 and currently has 8,300+ employees. Investec has a dual listed company structure with primary listings on the London and Johannesburg Stock Exchanges.
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