US-Based Arevon Secures $400M Green Loan for Solar, Storage Portfolio

Highlights :

  • To finance the development of a 6GW pipeline of solar and storage projects in the Midwest, Southeast, and California, Arevon Energy has obtained a $400 million green loan fund credit facility from the Canadian Imperial Bank of Commerce (CIBC) and KeyBank N.A.
  • The timing of this fundraising with Arevon’s one anniversary of operation solidifies the company’s financial strength in the renewable energy industry.

To finance the development of a 6 gigawatt (GW) pipeline of solar and storage projects in the Midwest, Southeast, and California, Arevon Energy, a US based renewable energy leader, has obtained a $400 million green loan fund credit facility from the Canadian Imperial Bank of Commerce (CIBC) and KeyBank N.A. The timing of this fundraising with Arevon’s one anniversary of operation solidifies the company’s financial strength in the renewable energy industry.

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Brian Callaway, Arevon’s Chief Financial Officer, stated that the size of this capital “reaffirms Arevon’s status in the finance world as one of the fastest-growing renewable independent power producers in the country.” “Complex financial engineering and access to facilities like this are a significant component of our competitive advantage.”

The two-year facility features a cutting-edge hybrid borrowing base made up of uncalled capital plus an additional component for net asset value. While KeyBanc Capital Markets served as a joint lead arranger, Canadian Imperial Bank of Commerce oversaw the transaction and acted as the administrative agent and coordinator for green structuring.

Margaret Fischer, Arevon’s treasurer, said, “We are grateful for our banking partners who fully support our objective to create contemporary solutions that accelerate the sustainable energy transition across the nation.

According to Edward Turowski, Head of US Fund Finance, Corporate Banking, CIBC, “We are proud to partner with Arevon and bring our structuring expertise in fund finance to support its first green loan hybrid fund facility as part of our commitment to helping our clients achieve their sustainability ambitions.” “This is just another way we are promoting long-term sustainability while encouraging expansion into new sectors of the economy.”

Arevon was represented by Stoel Rives as its attorney, while Mayer Brown served as its lender counsel.

By a long-term agreement, Pacific Gas and Electric Company will receive energy and resource adequacy services from the Nighthawk storage facility (PG&E). To meet with a California Public Utilities Commission ruling issued in June 2021 requiring load-serving organisations like PG&E to acquire additional energy supplies, the project was chosen through a competitive request for bids process. The Sycamore Canyon Substation, which collects renewable energy produced in the desert and transmits it to the San Diego region, will be the point where the Nighthawk project connects to the grid.

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