Hecate Grid Secures $125 Million Letter of Credit Facility Package with MUFG

Financing advances Hecate Grid's U.S. energy storage pipeline

CHICAGO, June 18, 2024 /PRNewswire/ -- Hecate Grid, a joint venture between an InfraRed Capital Partners managed fund ("InfraRed") and Hecate Energy, today announced the recent close of a 4-year $125 million Letter of Credit ("LC") facility with Mitsubishi UFJ Financial Group ("MUFG"). The facility will be used to finance interconnection and offtake security for Hecate Grid's portfolio of more than 30 standalone energy storage projects.

"Hecate Grid is committed to deploying energy storage that enables the transition to zero-carbon electricity while sustaining the reliability of the power grid," said John Bonner, Hecate Grid's Head of Finance. "The financial resources provided by MUFG will substantially augment Hecate Grid's ongoing growth program."

Stephane Kofman, Partner and Head of Value-add funds at InfraRed, said: "Hecate Grid is playing an important role in accelerating America's renewable energy transition and this facility further reinforces our growth ambition for the company."

Alberto Mihelcic Bazzana, Director at MUFG, said: "MUFG is pleased to partner with Hecate Grid as it deploys the energy storage resources needed to facilitate the effective and reliable integration of renewable resources into the electric system."

Macquarie Capital served as financial advisor to Hecate Grid. Millbank acted as borrowers' legal counsel and Paul Hastings acted as lenders' counsel.

About Hecate Grid

Launched in 2018, Hecate Grid is an independent power producer focused on developing, building, owning, and operating stand-alone energy storage projects. Originally incubated within the renewable energy development firm Hecate Energy, Hecate Grid is now a stand-alone business jointly owned by a fund managed by international asset manager InfraRed Capital Partners Limited, which manages $13 billion of equity capital. Hecate Grid has an active project pipeline of over six gigawatts of energy storage projects in development throughout the U.S. For more information on Hecate Grid, please visit www.hecategrid.com.

About InfraRed Capital Partners

InfraRed Capital Partners is an international infrastructure asset manager, with more than 160 professionals operating worldwide from offices in London, Madrid, New York, Sydney and Seoul. Over the past 25 years, InfraRed has established itself as a highly successful developer and steward of infrastructure assets that play a vital role in supporting communities. InfraRed manages US$13bn+ of equity capital for investors around the globe, in listed and private funds across both core and value-add strategies. InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. InfraRed represents the infrastructure equity arm of SLC Management, which also incorporates BGO, a global real estate investment management adviser, and Crescent Capital, a global alternative credit investment asset manager.

About MUFG and MUFG Americas

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries. MUFG has nearly 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to be "the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. MUFG's Americas operations, including its offices in the U.S., Latin America, and Canada, are primarily organized under MUFG Bank, Ltd. and subsidiaries, and are focused on Global Corporate and Investment Banking, Japanese Corporate Banking, and Global Markets. MUFG is one of the largest foreign banking organizations in the Americas. For locations, banking capabilities and services, career opportunities, and more, visit www.mufgamericas.com.

Media Contact:

Hecate Grid
Steven C. Sullivan
sullivan@powerny.com