Aypa Power, a prominent developer, owner, and operator specializing in utility-scale energy storage and hybrid renewable energy projects, has successfully secured a $1.5 billion construction warehouse revolving credit facility. This financing arrangement, which includes an additional $0.5 billion accordion feature, marks a significant milestone for the energy storage sector as the largest warehouse financing deal ever executed for a storage-focused independent power producer.
The funding will act as Aypa Power's primary financial resource for advancing its projects expected to become operational through 2028. The transaction underscores the company's rapid expansion in the energy storage market and its commitment to bolstering grid reliability in the United States.
"This market leading financing marks a significant milestone for Aypa Power and reflects the scale, quality, and readiness of our development portfolio", said Moe Hajabed, Chief Executive Officer of Aypa Power. "The warehouse facility positions us to advance a growing pipeline of utility-scale energy storage projects and continue delivering critical infrastructure that strengthens grid reliability across U.S. markets. We are appreciative of the confidence that this large group of lenders has placed in our ability to execute at this scale."
The facility was structured with leadership from the Canadian Imperial Bank of Commerce (CIBC) and Wells Fargo, both of which acted as key figures in bringing this significant transaction to fruition. These financial institutions also served as Lead Structuring Agents, Left Lead Arrangers, Coordinating Lead Arrangers, and Green Loan Coordinators.
"CIBC is proud to have led the structuring and execution of this important construction warehouse facility, supporting continued growth in the utility-scale energy storage sector", said Ines Serrao, Managing Director and Co-Head of U.S. Project Finance & Infrastructure at CIBC. "The facility is structured to support a portfolio of construction-ready, utility-scale assets and highlights the strength of Aypa Power's development discipline."
Alok Garg, Head of Project and Asset Finance at Wells Fargo, also emphasized the importance of this financing deal in the evolving energy landscape. "Wells Fargo is proud to support Aypa in bringing this facility to market. This financing demonstrates the growing importance of large-scale energy storage as a core component of the U.S. power system", he stated.
Aypa Power, a portfolio company of Blackstone, has been at the forefront of utility-scale energy storage development since its first project went online in 2018. With a current portfolio of 30 operational or under-construction projects and a development pipeline exceeding 22 gigawatts, the company is well-positioned to enhance grid reliability and support the transition to renewable energy sources. Aypa’s efforts align with the broader industry goal of lessening dependence on fossil fuels.
The $1.5 billion credit facility will play a pivotal role in advancing Aypa's extensive pipeline of utility-scale projects, ensuring the delivery of critical energy infrastructure in key U.S. markets. The three-year facility also involves the participation of several leading financial institutions, including Banco Santander, BNP Paribas, ING Capital LLC, Natixis, Royal Bank of Canada, and Société Générale, among others.
By securing this landmark financing, Aypa Power continues to solidify its standing as a leader in the energy storage sector, driving innovation and supporting the nation’s transition to a more reliable, renewable energy-powered grid.
