The financing allows DSD to support late-stage projects, fund bulk orders of equipment, and pursue larger-scale opportunities
SCHENECTADY, N.Y. — June 14, 2023 — DSD Renewables (DSD) has secured $140 million in pre-notice to proceed (NTP) credit facilities to support solar projects in late-stage development, as well as pursue additional opportunities presented through its Asset Acquisitions and Developer Network channels.
The capital will support the continued development of DSD’s late-stage development pipeline, totaling approximately 205 megawatts (MW) across California, Illinois, Maine, Massachusetts, Minnesota, New York, Vermont, and Virginia. The pipeline also features a variety of community solar projects, which will benefit from robust state incentive programs that promote distributed renewable energy assets and help increase access to clean energy for communities that need it most.
The funding arrangement was led by Santander Corporate & Investment Banking (Santander CIB), with HSBC USA Inc. (HSBC) and Rabobank Group (Rabobank) acting as joint lead arrangers. It includes a two-year, $100 million commitment for development financing that can be used to capitalize projects that have yet to reach the construction phase, and a two-year, $40 million equipment facility allocated for bulk orders of components, such as modules, inverters and batteries.
“This deal is unique for DSD and fits well within our go-to-market channels,” said Akash Patel, DSD’s Vice President of Underwriting. “It aligns with our equipment procurement strategy, allows us to get solar projects off the ground faster by providing short-term financial support before construction begins, and helps us manage capital in a manner that allows us to scale our platform more efficiently and effectively.”
The arrangement brings DSD’s total capital raised thus far in 2023 to $215 million. The assets financed by the pre-NTP credit facilities are expected to be operational between mid-2023 and early 2025.
“We’re excited to work with DSD again this time to help accelerate its expanding development activities,” said Parag Patel, Executive Director, Structured Finance & Advisory at Santander CIB. “DSD’s extensive pipeline is a great opportunity for us to facilitate much-needed investments in distributed renewable generation while contributing to the growth and development of the communities it serves.”
Once the projects in the development phase receive full NTP status, they will be further financed via DSD’s construction facility with Rabobank, Santander and others that has been in place since 2020.
About DSD Renewables
DSD Renewables (DSD) is transforming the way organizations harness clean energy while building a more sustainable future. With unparalleled capabilities including development, structured financing, project acquisition and long-term asset ownership, DSD accelerates the deployment of renewable energy resources and creates significant value for our commercial, industrial, and municipal customers and partners. Backed by world-leading financial partners like BlackRock Real Assets and rooted in our founding at GE, our team brings a distinct combination of ingenuity, rigor, and accountability to every project we manage, acquire, own, and maintain. To learn more, visit DSDRenewables.com and connect with us on LinkedIn, Twitter, and Facebook.
About Santander Corporate & Investment Banking
Santander Corporate & Investment Banking (Santander CIB) is the global business division of Santander that supports corporate and institutional clients, offering value-added wholesale products and services that aim to support their complex and sophisticated needs and advance their success
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in more than 38 countries worldwide. Founded over a century ago, Rabobank today is one of the world’s largest banks with over $660 billion in assets.
In the Americas, Rabobank Wholesale Banking North America is a premier corporate and investment bank to the food, agribusiness, commodities and energy industries. Rabo AgriFinance, a subsidiary of Rabobank, is a leading financial services provider for farmers, ranchers and agribusinesses in the United States. Together, we provide sector expertise, strategic counsel and tailored financial solutions to clients across the entire value chain. Visit www.RabobankWholesaleBankingNA.com and www.RaboAg.com.