Nexus Renewables closes multiple financings totaling over USD40 Million
TORONTO, June 12, 2023 /CNW/ - Nexus Renewables Inc. ("Nexus", or "the Company"), a leading North American developer of renewable power projects and energy storage solutions, today announced the concurrent closing of (i) a USD13.3 million senior secured loan led by Aiga Capital Partners ("Aiga"), (ii) a USD14.5 million project-level financing led by Synovus Bank ("Synovus"), (iii) a CAD5.0 million commitment for privately-placed preferred shares, and (iv) a USD10.8 million tax equity commitment led by Greenprint Capital ("Greenprint"). Proceeds from the financings will be used to construct a 10MW/40MWh battery energy storage system (BESS) located in Fairfield, California, and advance development on the remainder of the Company's portfolio, which includes a 300MW/600MWh BESS project located near Houston, Texas.
This transaction is transformative for Nexus Renewables as the Company pivots from a pure-play renewable developer to an independent power producer. It was only 18-months ago that Nexus first established itself as a pure-play renewable developer with the announcement of a USD100 million financing arrangement with an institutional offtaker.
Keith Sandor, Chief Executive Officer of Nexus Renewables, stated: "Nexus is operating in a high-growth, rapidly expanding marketplace. Our team is well-positioned to rapidly capture meaningful market share. These financings not only demonstrate our ability to finance projects directly under the Nexus Renewables banner, but also provide the framework for repeatable business and accelerated future growth. We are excited to advance construction on our 10MW/40MWh BESS project and look forward to leveraging this framework for future projects as we grow our platform with the support of our partners".
"The partnership with Nexus is well aligned with Aiga's mission to provide developers of sustainable assets with growth capital to catalyze the deployment of assets needed to meet net zero emissions targets," said Angel Fierro, Managing Partner at Aiga Capital Partners. "Our flexible capital solutions are intended to support Nexus' innovation and scale the platform across multiple geographies. Aiga's senior secured facility has the flexibility of increasing in size as Nexus' collateralized portfolio increases in value."
Synovus' project-level financing provides construction-to-term financing and bridges tax-equity financing. "Synovus is proud to support the vision of Nexus Renewables," said Matthew Nodvedt, Senior Director of Alternative Energy Banking at Synovus. "We're excited about the solutions battery storage offers and look forward to partnering with Nexus on future opportunities."
Greenprint's tax equity commitment will monetize investment tax credits (ITC) made available through recent changes to the US tax code vis-à-vis the Inflation Reduction Act (IRA). "The Inflation Reduction Act is driving forward energy transition initiatives and we are excited to be a part of that. This transaction represents the hard work of multiple stakeholders and will promote job growth, grid stabilization, and energy innovation in Solano County." said Peter DeFazio, Managing Director at Greenprint Capital, LLC.
About Nexus Renewables: Nexus Renewables is a full-service renewable energy developer and independent power producer with a current portfolio of more than 1GW of North American solar and energy storage projects under various stages of construction and development. Our projects provide clean energy and widespread economic and environmental benefits for landowners, communities, and energy customers. For more information, visit www.nexusrenewables.ca.
About Aiga Capital Partners: Aiga is a minority-owned investment adviser supporting the Energy Transition with structured debt and equity investments for developers of sustainable assets in North America. In an effort to contribute towards net zero emissions targets, our strategy targets growth capital deployment opportunities in renewable energy, energy storage and other sustainable infrastructure sectors. To learn more, visit www.aigacapital.com
About Synovus Bank: Our purpose is enabling people to reach their full potential, whether they're our clients, team members, or the communities we serve. So far, this approach has served us well. Today, Synovus is a top-performing midcap bank with over $62 billion in assets and has been named one of the Best Banks in America by Forbes. And as we continue this course, we're excited for tomorrow. Learn more at www.Synovus.com
About Greenprint Capital: Greenprint specializes in renewable energy tax credit acquisitions and is a market leader in tax credit underwriting and verification. Greenprint is solely dedicated to investing in climate positive solutions, providing capital to leading companies in energy efficiency, renewable energy, and other sustainable infrastructure markets. For more information, visit www.greenprintcapital.com
SOURCE Nexus Renewables Inc.
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