Hecate Grid, a joint venture between a fund managed by InfraRed Capital Partners and Hecate Energy, recently concluded a four-year, $125 million credit facility with Mitsubishi UFJ Financial Group (MUFG). The funding will be used to secure interconnections and purchase guarantees for more than 30 stand-alone energy storage projects across the United States. This development marks a crucial step in Hecate Grid’s ambition to strengthen its position in the energy storage market.
Partner commitments and outlook
John Bonner, Head of Finance at Hecate Grid, expressed the importance of these financial resources to support the company’s continued growth. For his part, Stephane Kofman, Partner and Head of Value-Added Funds at InfraRed, emphasized Hecate Grid’s strategic role in the US energy storage sector. He also reaffirmed the company’s ambition to grow thanks to this new credit facility. Alberto Mihelcic Bazzana, Director at MUFG, said the financial group is delighted to be partnering with Hecate Grid to deploy the energy storage resources needed for the efficient and reliable integration of renewable resources into the power system. This collaboration demonstrates MUFG’s commitment to supporting strategic and innovative initiatives in the energy sector.
Financial and legal advice
Macquarie Capital acted as financial advisor to Hecate Grid in this transaction, while Millbank acted as legal advisor to the borrowers and Paul Hastings as advisor to the lenders. These strong partnerships and expert advice were essential in structuring and finalizing this credit facility.
About Hecate Grid and InfraRed Capital Partners
Founded in 2018, Hecate Grid is an independent power producer focusing on the development, construction, ownership and operation of autonomous energy storage projects. Originally incubated within Hecate Energy, Hecate Grid is now a stand-alone company, co-owned by a fund managed by InfraRed Capital Partners, which manages $13 billion in equity capital. With an active pipeline of over six gigawatts of energy storage projects under development in the United States, Hecate Grid plays an essential role in the American energy landscape. InfraRed Capital Partners is an international infrastructure asset manager, with over 160 professionals operating worldwide from offices in London, Madrid, New York, Sydney and Seoul. As a developer and manager of infrastructure assets, InfraRed supports communities by investing in projects that are essential to society. MUFG, one of the world’s leading financial groups, is based in Tokyo and has a global network of over 2,100 sites in more than 50 countries. With almost 160,000 employees, MUFG offers a range of financial services, including commercial banking, asset management and consumer credit. This financial partnership with Hecate Grid illustrates MUFG’s commitment to supporting strategic projects in the energy sector. The $125 million financing with MUFG will enable Hecate Grid to strengthen its capacity to develop energy storage projects, supporting its growth strategy in the US market. This initiative is a significant step forward for the US energy infrastructure, demonstrating the importance of strategic collaborations in the renewable energy sector.
