Pattern Energy Closes USD 11 Bn Financing of Clean Energy Infrastructure Project in US

Pattern Energy Group LP (Pattern Energy) has closed an USD 11 billion non-recourse financing and begun full construction of SunZia Transmission and SunZia Wind, which together is the largest clean energy infrastructure project in US history.

SunZia Transmission is a 550-mile ±525 kV high-voltage direct current (HVDC) transmission line between central New Mexico and south-central Arizona with the capacity to transport 3,000 MW of clean, reliable, and affordable electricity across Western states. SunZia Transmission will deliver clean power generated by Pattern Energy’s 3,515 MW SunZia Wind facility, the largest wind project in the Western Hemisphere, which is being constructed across Torrance, Lincoln, and San Miguel Counties in New Mexico.

This groundbreaking financing includes an integrated construction loan and letter of credit facility, two separate term facilities, an operating phase letter of credit facility, an innovative tax equity term loan facility and a holding company loan facility.

“Our hope is this successful financing of the largest clean energy infrastructure project in American history serves as an example for other ambitious renewable infrastructure initiatives that are needed to accelerate our transition to a carbon free future,” said Hunter Armistead, CEO of Pattern Energy. “We are very grateful to all of our financial partners who are backing SunZia as part of this record-setting project financing. Construction is well underway on this historic project that will deliver clean power with a generation profile that complements abundant solar generation available across the Western United States. We’d specifically like to thank our shareholders for their support of Pattern’s efforts to deliver this critical project and meaningfully advance the world’s energy transition.”

For the approximately USD 8.8 billion construction and term facilities, BNP Paribas, Crédit Agricole Corporate and Investment Bank, CoBank, ACB; Desjardins Group, Export Development Canada, ING Capital LLC, Intesa Sanpaolo S.p.A., New York Branch, KFW IPEX-Bank, MUFG Bank, Ltd., National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, Sumitomo Mitsui Banking Corporation and Wells Fargo Securities, LLC acted as Initial Coordinating Lead Arrangers and Joint Bookrunners. Banco Bilbao Vizcaya Argentaria, The Bank of Nova Scotia and Sumitomo Mitsui Trust Bank, Limited, New York Branch acted as Coordinating Lead Arrangers.

BNP Paribas, Crédit Agricole Corporate and Investment Bank, MUFG Bank, Ltd., Societe Generale, and Sumitomo Mitsui Banking Corporation are acting as co-syndication agents. MUFG Bank, Ltd. is acting as Administrative Agent and Deutsche Bank Trust and Agency Services is acting as collateral and deposit agent for the transaction.

“SunZia represents an important step forward in the global transition to renewable energy and we are pleased to support Pattern as it works to bring this project toward completion,” said Bill Rogers, Managing Director, Global Head of Sustainable Energies, CPP Investments. “CPP Investments’ ability to provide a unique combination of flexible capital and deep expertise places us well to support projects like SunZia, which we expect will provide attractive, risk-adjusted returns to the CPP Fund over the long term.”

“This financing is a testament to the commitment of our financing partners to the renewable energy space and to Pattern,” said Daniel Elkort, Executive Vice President at Pattern Energy. “The size and scale of both the SunZia project and this multifaceted financing show that the renewable energy space can secure attractive capital at levels previously only seen in traditional generation.”