North American energy storage company, Aypa Power, has successfully secured a substantial $350 million financing facility for the development and construction of battery projects in the United States.
This significant milestone was announced by global legal services provider Milbank LLP, which represented the arrangers and lenders in the transaction, including MUFG, Nomura, National Bank of Canada, and First Citizens Bank.
The funding will bolster the execution of two notable projects: the 150-Megawatt (MW)/330-Megawatt-hour (MWh) Borden battery energy storage project in Borden County, Texas, and the 100-MW/400-MWh Cald project in Los Angeles County, California. Aypa Power, a company under the Blackstone portfolio, holds ownership of these assets.
Daniel J. Michalchuk, the leader of Milbank's group project, energy, and infrastructure finance practice group, expressed his satisfaction with the financing, emphasizing its groundbreaking nature. He noted that this venture marks one of the initial standalone battery energy storage projects involving full tax equity participation and incorporates mechanisms pertinent to tax credit transferability, thanks to the Inflation Reduction Act.