Scale Microgrids Secures Major Financing from Truist Bank
Scale Microgrids' Major Financial Milestone
In a significant move for the renewable energy sector, Scale Microgrids has recently finalized a major tax equity financing deal with Truist Bank. This partnership will provide Scale with up to $150 million, aimed at advancing the construction and development of distributed energy assets across the country.
Impact on Energy Projects
The financing from Truist will play a crucial role in supporting Scale's efforts to construct a range of microgrid projects. These projects are designed to cater to commercial and industrial customers from various industries, as well as community-scale solar and battery storage installations. With many projects scheduled for development over the next 18 months, the funding comes at a pivotal time as demand for cleaner energy rises nationwide.
Supporting Diverse Energy Needs
Julian Torres, the Chief Investment Officer at Scale, expressed enthusiasm about the partnership, noting its significance in enabling their team to manage a diverse portfolio of distributed energy assets. The ability to access this substantial investment means Scale can evolve in response to the burgeoning energy demands of their clients, particularly in an era marked by load growth and grid constraints.
Truist's Role in Sustainable Energy
Truist Bank, a key player in this transaction, conveys its pride in supporting Scale Microgrids. Chris Nygren, Head of Tax Equity at Truist, emphasized their commitment to fostering portfolios geared towards renewable energy, which ultimately benefits end users like universities, hospitals, and businesses. This partnership encapsulates Truist's ongoing mission to inspire and create better living conditions within communities.
Strengthening Capital Resources
The partnership with Truist significantly enriches Scale's capital resources, complementing earlier partnerships with institutional investors. This includes a well-established relationship that resulted in a $300 million equity investment from Warburg Pincus, in addition to a project finance debt facility totaling up to $225 million from KeyBanc Capital Markets and City National Bank.
Maximizing Financial Flexibility
Furthermore, Scale has reached into the tax credit transfer market through a collaboration with Captona. This strategic combination of partnerships along with tax credit capabilities equips Scale to deliver flexible financial solutions that optimize each layer of the capital stack for their clients and partners.
About Scale Microgrids
Scale Microgrids is a recognized player in the energy sector, specializing in designing, building, financing, owning, and operating distributed energy assets that promise more affordable, cleaner, and resilient energy solutions. Through their expertise, they aid in the accelerated growth of renewable energy by providing essential financing to project developers. They also empower large energy consumers with microgrid solutions that integrate solar and battery technologies alongside other on-site energy assets.
About Truist
Truist Financial Corporation stands as a purpose-driven financial services organization dedicated to inspiring better lives and building thriving communities. As one of the leading commercial banks in the United States, Truist enjoys a healthy market share in burgeoning markets across the nation. They provide diverse products and services, including consumer and small business banking, commercial banking, investment banking, and wealth management. Headquartered in Charlotte, North Carolina, Truist is a prominent commercial entity, boasting total assets exceeding $523 billion as of the last quarter.
Frequently Asked Questions
What is the total amount of financing secured by Scale Microgrids?
Scale Microgrids has secured up to $150 million in tax equity financing from Truist Bank.
What type of projects will this financing support?
The financing will support the construction of microgrids, community-scale solar, and battery storage projects.
Who expressed enthusiasm for the partnership with Truist?
Julian Torres, Chief Investment Officer at Scale, expressed excitement about this partnership and its potential impact.
How does Truist Bank view their role in the partnership?
Truist Bank is proud to support the development of renewable energy projects that contribute to cleaner power for various end users.
What previous partnerships have contributed to Scale's capital?
Scale has partnered with several institutional investors, including a $300 million equity investment from Warburg Pincus and a debt facility totaling $225 million from KeyBanc Capital Markets.
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