US-based electric power provider Altus Power has secured a new facility to support the construction of its commercial solar assets.
The plant, provided by alternative investment manager Blackstone, has a capacity of $200m to fund affiliated development costs.
Altus CFO Dustin Weber said: “In an environment where bank lending and conventional construction facilities are extremely limited, Altus Power has secured an additional line of capital from Blackstone which can be used to fund our construction activity.
“This new facility provides a significant advantage as we look to optimise our working capital to support our targeted expansion in 2024 and beyond.”
According to Blackstone Structured Finance Group’s Asset Based Finance global head Robert Camacho, the company partnered with Altus to mobilise insurance financing on behalf of its insurance clients.
The Blackstone Construction Facility will fund expenditures such as equipment, labour, connectivity, development and other costs.
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Altus co-founder and co-CEO Gregg Felton said: “We built our business to be resilient and capable of prospering in various market environments, including the current one. This first-of-its-kind facility demonstrates our team’s financing ingenuity and our longstanding Blackstone relationship.
“Together with Blackstone, we designed this construction facility to leverage the strong appetite of insurance capital which provides long-term financing and will now also finance Altus during the construction period.”
Last month, Altus, in collaboration with Brightcore Energy, built 19 solar arrays throughout New Jersey, US, leveraging rooftops from Brennan Investment Group’s logistics building portfolio.