Metro Finance’s Post

New U.S. ‘green bank’ aims to steer over $160B in capital into climate tech For years, banks have been financing large renewable power projects, from utility-scale solar farms to horizon-spanning wind farms. But smaller projects, like installing a heat pump in someone’s home or retrofitting affordable housing, often get passed over. They simply haven’t been lucrative enough. But the demand is there, which is why advocates have been clamoring for the federal government to support a so-called green bank, which will underwrite these sorts of projects. That green bank is now a reality. On Thursday, the EPA announced that it had awarded $20 billion in grants from the Inflation Reduction Act to eight organizations that will use the money to make loans that will help with those projects. https://lnkd.in/g7jV9QYY

🌍 New in Commodities Journal! 🌍 "Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans" By K. Thomas Liaw, St. John’s University This paper explores how PACE programs drive energy efficiency, support renewable energy, and contribute to the UN’s Sustainable Development Goals (SDGs). It also examines the securitization of PACE loans through green bonds, addressing key concerns for growth. 📖 Read the full article https://lnkd.in/dUnpJ8jb #SustainableDevelopment #CleanEnergy #GreenBonds #PACEPrograms #ClimateFinance #EnergyEfficiency #EnvironmentalImpact #CarbonReduction #SustainableInvesting #RenewableEnergy #CommoditiesJournal

Top Energy converts 100% of lending into certified Green Loans Top Energy has successfully converted 100% of its lending into Green Loans. Following the success of reinjecting carbon emissions from the Ngāwhā geothermal power stations, Top Energy has sufficient eligible assets to convert all lending facilities into Green Loans. Westpac New Zealand Limited (Westpac) was appointed as sole Sustainability Coordinator for the development of the Green Finance Framework which aligns with the APLMA/LMA/LSTA Green Loan Principles and ICMA Green Bond Principles. A green loan is a type of loan specifically designed to fund projects or investments that have clear environmental benefits. The eligibility criteria for the Green Loans include Renewable Energy—Electrical Grids and Storage—and Renewable Energy—Generation. Top Energy will show that it continues to meet the criteria through annual certification. Establishment of the Framework is part of the wider commitment to sustainability as reported in Annual Sustainability Reports over the last three years. Being able to achieve 100% Green Loans is a testament to the relationships with the wider lender panel, consisting of ANZ, BNZ, Bank of China, CCB, ICBC, and Westpac.

FAVOURABLE BANK FINANCING OF A SOLAR POWER PLANT – WHAT WE DID AND HOW WE DID IT ⚡I am happy to have supported a client from the engineering / energy sector in obtaining EUR 3m 10-year bank loan to finance its solar power plant project. The financing has been secured under extremely favourable conditions. ❓What have we managed to secure? ✅Full market risk accepted by the bank (hence no PPA or similar arrangement) ✅Very low interest rate – 1,62% fixed for the duration of the loan (10 years) ✅No recourse to client’s other businesses ✅Only one, favourable financial covenant ✅Much more, but these elements shall remain undisclosed (these remain my secret sauce 😉) ❓How we did it? 1️⃣First, we built the business case, including the cash flow projections under several scenarios. The biggest challenge were the fluctuations of key assumptions over the past year (most notably of the electricity price), because there was no PPA or a similar agreement. 2️⃣Second, based on the cash flow model, we selected the appropriate financing structure, including the loan tenor, acceptable interest rate, borrower, acceptable guarantors, etc. 3️⃣Third, resulting from the points 1 and 2, we identified relevant contractual clauses. We split them into a) dealbreakers, b) clauses ready to negotiate and what we would be ready to accept under each of them, and c) acceptable clauses. This allowed us to be clear toward the bank and ourselves what we can realistically achieve. 4️⃣Finally, the client signed the deal! All of this would not have been possible without a proper strategic approach. Obtaining #bank financing requires diligence and strategic thinking, with very little space for error. You have to develop a plan A, but also a plan B, C… - many alternatives and mitigants to what could come your way.   I have to admit – it was not an easy ride. The key assumptions were changing constantly, including electricity price, interest rate, equipment price, and most challenging – the bank’s standpoint. To be honest, we did not manage to get everything we wanted, because everything comes at a cost. Still, we managed to renegotiate the bank’s initial requirements and sign the deal under very favourable conditions. (The client’s and the bank’s name shall remain undisclosed due to confidentiality reasons.) 🌞This project will improve Croatia’s energy balance by adding sustainable and renewable energy to its #energy mix.   _____ 📱 📩 In case you are contemplating obtaining a bank loan and: ✔want to secure favourable financing ✔find the best possible financing structure for your company so you don't risk losing everything ✔want to achieve many benefits unknown to most borrowers - feel free to get in touch. #esg #sustainability #financing #kredit #banka #financiranje #creditrisk #credit #solarpowerplant #renewableenergy

The Energy Efficiency Grant (EEG) will be extended beyond the original March 2024 deadline and expanded to even more sectors. Discover how local SMEs can be subsidised to embrace green solutions 🌿 #energyefficiency #sgbudget2024 #greensg https://bit.ly/4avUigQ

🌱 Learn about #CPACE! This unique financing helps property owners fund energy efficiency and renewable projects through property tax assessments. The financing stays with the property, making it perfect for long-term investments. Available in states with enabling legislation. Read more: https://ow.ly/pcOx50SKB4R #Sustainability #EnergyEfficiency #GreenFinancing

New Investigation: Enbridge received $7.3 billion in sustainability-linked financing. Then its emissions rose. The best part: because of the convoluted way the financing works, Enbridge will meet its emissions reductions commitment and save millions in interest payments. Here's the thing about "sustainability-linked" loans and bonds: Not only do they not require you to reduce your emissions, they don't even require you spend the money on environmental stuff. Enbridge spent $21B on oil+gas pipelines/storage and only $0.4B on renewables. https://lnkd.in/gDNddjsR

UK energy provider OVO and banking major HSBC have partnered to offer new financing options for homeowners to install low-carbon technologies. #energytransition

Last week, Administrator Isabel Casillas Guzman announced that SBA has removed the 504 Loan Program’s cap on lending for clean energy projects as part of broader efforts to usher in our nation’s clean energy future. Previously, small businesses financing for energy projects were limited to three SBA 504 loans of $5.5 million each, for a maximum total of $16.5 million. Going forward, borrowers may secure as many 504 loans up to $5.5 million for which they otherwise qualify. Energy public policy projects include those that reduce energy consumption (e.g., retrofits) and renewable energy projects (e.g., adding solar), etc. In addition to this announcement, the SBA continues to advance its core lending and investment programs in collaboration with the private capital markets to advance capital access for small businesses fueling the clean energy economy. A new Climate Capital Guidebook released last week by the White House provides a comprehensive map of financing programs across the federal government, including from the SBA, that are available to climate-related small businesses and their investors. 📗 Download the guidebook: https://lnkd.in/gtkDHmwE 📰 Read our latest press release to learn more: https://lnkd.in/e5-txsYE