National Grid joint venture secures $150 million in green financing to advance multiple U.S. renewable energy projects

Financing secured by Emerald Energy Venture will help fund construction of a mix of U.S. solar, battery storage and wind projects being developed by National Grid Renewables.

National Grid announced today that its Emerald Energy Venture, LLC joint venture has secured an innovative $150 million Portfolio Revolving facility, with an accordion feature that will allow an increase to $250 million beginning in mid-2022; to support the growth of its renewable energy portfolio in the U.S. The new financing will support part of the construction of a mix of solar, battery storage and wind projects being developed by National Grid Renewables, the company’s competitive renewable energy arm.

This novel facility will bundle several renewable energy projects together to provide economies of scale and operational efficiencies. It was structured under National Grid’s Green Financing Framework, evidencing once again the company’s strong commitment to advance a cleaner energy system.

“Adding more renewable energy to the grid is just one of the many ways that National Grid is supporting the transition towards a cleaner energy landscape,” said Alexandra Lewis, Group Treasurer of National Grid plc. “This new green facility will help accelerate the work National Grid Renewables is doing in the renewable energy space in the U.S., which not only generates significant environmental benefits but also drives economic activity and creates green jobs in communities across America.”

National Grid Renewables develops, owns and operates large-scale renewable energy projects across the U.S., including solar, wind and battery storage. This facility is expected to help fund part of the construction of an estimated 1.05 gigawatts (GW) of clean energy generation capacity – enough to avoid more than 1.6 million metric tons of carbon dioxide annually according to the Environmental Protection Agency’s greenhouse gas equivalencies calculator.

SMBC structured this Portfolio Revolving facility and will act as a Lead Arranger, Bookrunner, Green Loan Coordinator, Collateral and Administrative Agent. SMBC has extensive expertise leading and closing project finance transactions in the Americas and is consistently recognized as one of the top lead arrangers in the business.

Carl Adams, Executive Officer and Deputy Head of SMBC Americas Division said: “Sustainability-linked business, and green energy in particular, has and continues to be the cornerstone of our business globally, as we strive to support our clients in promoting and creating positive social, economic and environmental change. We are proud to have partnered with National Grid on the successful origination of this unique transaction, which embodies what we want to achieve in the market.”

Morgan, Lewis & Bockius LLP advised Emerald Energy Venture and SMBC was advised by Winston & Strawn LLP.