U.S.-based Hecate Energy, a developer of renewable projects and provider of energy storage solutions, closed a five-year $550 million credit facility package, including a $250 million term loan and $300 million Letter of Credit facility.

The credit facility will support Hecate’s plans to expand its solar and energy storage project pipeline.

The new facilities will be collateralized with the company’s approximately 35 GW development pipeline comprising over 125 projects across ten power markets in North America, along with its minority ownership interests in Hecate Grid.

Hecate Grid is a developer, owner, and operator of standalone storage projects in the U.S. The platform is jointly owned by Hecate Energy and InfraRed Capital, a $10-plus billion infrastructure fund.

The proceeds from the term loan helped refinance an existing loan facility at a lower cost to Hecate, and the letter of credit enables it to issue numerous grid interconnection and power purchase agreements that will support its target of achieving sales of over 5 GW annually.

CEO of Hecate Energy, Chris Bullinger, said, “Support from these leading international financial institutions validates Hecate’s approach to renewables development and will accelerate our drive to deploy significantly more efficient and cost-effective renewable energy and storage solutions across the United States.”

Fred Petit, Co-Head of Investec’s North American Power & Infrastructure Coverage, said, “We worked with the company to identify a syndicate of lenders that could deliver on a well-structured transaction to support one of the largest pipelines of solar and energy storage assets in the U.S. This financing demonstrates Investec’s continued commitment to the energy transition sector, our strong distribution capabilities, and ability to meet our clients’ objectives.”

Over the last eight years, the company has executed over 36 power project transactions, totaling more than 6,500 MW of capacity.

In May 2021, Spanish energy company Repsol agreed to purchase a 40% stake in Hecate energy. The acquisition was aimed at helping Repsol expand its presence in America’s renewable energy market.

In August 2021, Greenbacker Renewable Energy, through a wholly-owned subsidiary, purchased two utility-scale solar projects – Hecate Energy Albany 1 (20 MW) and Hecate Energy Albany 2 (20 MW) – totaling 40 MW from Hecate Energy.