Storage developer Hecate Grid closes $125m MUFG financing

June 20, 2024

US storage developer Hecate Grid, a joint venture between an InfraRed Capital Partners managed fund and Hecate Energy, has closed a four-year $125 million letter of credit facility with 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,” a statement said.

John Bonner, Hecate Grid’s head of finance, said: “Hecate Grid is committed to deploying energy storage that enables the transition to zero-carbon electricity while sustaining the reliability of the power grid. 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, added: “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.”

Meanwhile, Alberto Mihelcic Bazzana, director at MUFG, commented: “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.