On.Energy, a growing electric power asset owner and proven end-to-end integrator of battery energy storage systems (BESS) announced it had closed a senior secured first lien facility with Lombard Odier Investment Managers (LOIM) on behalf of funds under its management, including the LOIM Sustainable Private Credit Strategy.
This facility will help On.Energy amplifies and accelerates project development efforts as the company expands its U.S. asset base, including a further 400MWh portfolio in ERCOT and a combined 1.1 GWh in development across California and Texas. And the funding is architected to support costs typically subject to less efficient financing in the market today, including site control, engineering and interconnection, project and interconnection bonding, and project M&A.
KEY QUOTES:
“We are proud to work with LOIM following referral from an existing Strategy portfolio company given its reputation for creating innovative and aligned capital solutions. Despite tailwinds from the Inflation Reduction Act (IRA), structured financial solutions with top-tier partners like Lombard Odier Investment Managers are essential to put critically-needed, resilient storage capacity online. Across the country, electrical grids are more vulnerable now than ever – particularly as unprecedented growth of low-cost intermittent renewables continues to drive grid decarbonization. Our solutions enable industrial customers and power grids to operate more efficiently while supporting the transition to net zero.”
- On.Energy CEO Alan Cooper, who led the transaction together with CFO David Fernandes
“We are pleased to further leverage our private markets platform and expertise in delivering a tailored capital solution for On.Energy. Their impressive track record of sustainable real asset creation speaks to the strength of the opportunity set in catalyzing scale for non-sponsored providers of climate solutions.”
- Jean-Pascal Porcherot, Co-Head of LOIM and Managing Partner, Lombard Odier Group
“At Lombard Odier, we believe private assets present a compelling pathway for investing in pure-play climate solution providers, including those who play a pivotal role in the electrification of our economy. We see aligned opportunities to support and accelerate these business models by leveraging our sustainability capabilities.”
- Thomas Hohne-Sparborth, Head of Sustainability Research at LOIM
