November 8, 2023
Aypa Power Secures $550 Million Portfolio Financing for Borden County and Cald Battery Storage Projects
Aypa Power(“Aypa”), a Blackstone portfolio company and a leading independent power producer (IPP) specializing in the development, construction and operations of utility-scale energy storage and hybrid renewable energy projects, has successfully closed a $550 million portfolio debt and tax equity financing, with First Citizens Bank & Trust Company, Nomura Securities International, Inc., National Bank of Canada and MUFG Bank, LTD. serving as lenders, and U.S. Bancorp Impact Finance as the portfolio’s tax equity investor.
This portfolio financing supports both the Cald project, a 100MW / 400MWh standalone battery storage project in urban Los Angeles, California which secured a long-term tolling agreement with San Diego Gas & Electric, and the Borden County project, a 150MW / 300MWh battery storage project in Texas. Both projects are under construction and set to commence commercial operations in 2024, bolstering grid reliability and stability within their respective regions and contributing to the integration of renewables and overall energy security.
Marc Atlas, Chief Financial Officer at Aypa Power, expressed his enthusiasm about the financing, stating, “We are very pleased to secure this significant financing package, and greatly appreciate the support and collaboration of our lender consortium and tax equity investor. Our financial partners are confident in Aypa Power’s ability to deliver impactful energy solutions benefitting both the grid and Aypa’s customers. We look forward to working with the investor community to bring more standalone battery and hybrid systems online, as customer demand continues to grow across North America.”
Louise Pesce, Managing Director of Project Finance at MUFG, which is also serving as Administrative Agent on the transaction, stated, “MUFG is proud to have partnered with Aypa Power, as well as our fellow lead lenders in Nomura, First Citizens Bank and National Bank of Canada, to lead the financing for these two standalone battery storage projects, which will be essential components in enhancing the reliability and effectiveness of renewable energy systems in California and Texas.”“Itis our pleasure to partner with Aypa as the tax equity investor,” said U.S. Bancorp Impact FinanceSenior Vice President Adam Altenhofen. “Our financing helps facilitate the energy transition and it’s exciting to consider the potential impact of these projects in California and Texas.”
About Aypa Power
Aypa Power is a Blackstone portfolio company and pioneering developer, owner, and operator of battery storage and hybrid systems for utilities, municipalities, cooperatives, and large corporate customers. Aypa works closely with its partners to understand their unique needs and create customized products and solutions. Aypa’s first battery storage project came online in 2018, and the company currently has more than 12GW in development across North America.