AIP Management's ESG Report for 2021 is now published! With the annual ESG report, AIP management is proud to make public its progress and transparency on ESG matters and initiatives. During 2021, the EU Sustainable Finance Disclosure Regulation came in force (SFDR). AIP welcomes the…
AIP adds another two assets to its partnership with Longroad Energy in the US
AIP today announced that we have executed an investment in two solar facilities in a partnership with Longroad Energy. One being Prospero I, a 379MWdc solar park in West Texas, and one being Little Bear, a 215MWdc solar park in California. The transaction is AIP’s second transaction with US-based developer Longroad Energy, and brings AIP’s total number of renewable projects in the US to five, combining a total capacity of 1.1 GW.
“Driving the much-needed energy transition takes a vast amount of resources, experience and capital. Therefore, I am very proud of this transaction, which further strengthens our partnership with Longroad, and brings together the expertise of Longroad with the investment experience at AIP, while generating long-term stable returns for the pension savers of PKA and PenSam,” said Kasper Hansen, Managing Partner of AIP.
AIP investors PKA and PenSam are acquiring a 50% equity stake alongside Longroad Energy who will continue to own the remaining 50% of the equity in both projects. In addition, PKA and PenSam will provide a term loan to the Prospero I project. The Prospero I solar park is expected to achieve commercial operation by June 2020 and the Little Bear solar park is expected to achieve commercial operation by November 2020, both creating hundreds of construction jobs as well as permanent jobs once operational. Combined, the projects are expected to produce electricity to cover more than 280,000 households. AIP’s sizeable renewables portfolio now counts approximately 4.0 GW supplying more than 3.5 million households across Northern Europe and the US with clean energy.
At the Little Bear project, KeyBanc Capital Markets Inc. and Santander Corporate & Investment Banking closed $333 million of the credit facilities for the project and acted as Coordinating Lead Arrangers. U.S. Bank is the sole tax equity investor.
At the Prospero I project CIT is the Coordinating Lead Arranger for the construction loan. Other banks include Silicon Valley Bank, Zions Bancorporation NA, National Australia Bank Ltd, Landesbank Hessen-Thuringen Girozentrale (Helaba), Rabobank, and Commerzbank. Facebook is the sole tax equity investor.