Hecate Grid, a joint venture between a fund managed by InfraRed Capital Partners and Hecate Energy, has recently secured a $125 million letter of credit facility with Mitsubishi UFJ Financial Group (MUFG).
This four-year financing agreement will be instrumental in supporting Hecate Grid’s expanding portfolio of energy storage projects across the United States.
Strategic Investment in Energy Storage
This substantial financial commitment from MUFG will be utilized to secure interconnections and offtake agreements for over 30 standalone energy storage projects in Hecate Grid’s pipeline. This development marks a pivotal step in Hecate Grid’s ambition to solidify its position in the burgeoning energy storage market.
Partner Commitments and Future Outlook
John Bonner, Head of Finance at Hecate Grid, emphasized the significance of this funding in fueling the company’s continued growth. Stephane Kofman, Partner and Head of Value Added Funds at InfraRed, highlighted Hecate Grid’s strategic role in the U.S. energy storage sector and expressed confidence in the company’s expansion plans, further bolstered by this new credit facility.
Alberto Mihelcic Bazzana, Director at MUFG, affirmed the financial group’s enthusiasm for partnering with Hecate Grid to deploy essential energy storage resources. This collaboration aims to enable the efficient and reliable integration of renewable energy sources into the power grid, showcasing MUFG’s commitment to supporting strategic and innovative initiatives in the energy sector.
Financial and Legal Advisors
Macquarie Capital served as the financial advisor for Hecate Grid in this transaction, while Millbank acted as legal counsel for the borrowers and Paul Hastings for the lenders. These robust partnerships and expert guidance were crucial in structuring and finalizing this credit facility.
About Hecate Grid and InfraRed Capital Partners
Established in 2018, Hecate Grid is an independent power producer focused on developing, constructing, owning, and operating standalone energy storage projects. Initially incubated within Hecate Energy, Hecate Grid has since become an independent entity, co-owned by a fund managed by InfraRed Capital Partners, which manages $13 billion in equity capital.
With an active pipeline of over six gigawatts of energy storage projects under development across the U.S., Hecate Grid plays a pivotal role in the American energy landscape.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) is a leading global financial group headquartered in Tokyo, with a vast network of over 2,100 locations in more than 50 countries. With nearly 160,000 employees, MUFG offers a wide range of financial services, including commercial banking, asset management, and consumer finance. This financial partnership with Hecate Grid underscores MUFG’s dedication to supporting strategic projects in the energy sector.
The $125 million funding from MUFG will empower Hecate Grid to expand its capacity to develop energy storage projects, thereby bolstering its growth strategy in the U.S. market. This initiative represents a significant advancement for the U.S. energy infrastructure, demonstrating the importance of strategic collaborations in the renewable energy sector.