PowerBank Corporation, a leader in North American energy infrastructure development and asset ownership, announced that it and its subsidiaries have entered into a loan agreement with NY Green Bank (“NYGB”) for a revolving credit facility with initial principal amount of up to $8 million USD (the “Loan”) that will be used to fund interconnection deposits for an initial portfolio of 50 MW of distributed solar power and battery energy storage projects located in New York State (the “Projects”). The Company will add projects to the portfolio beyond the initial 50 MW as they are ready.

NY Green Bank, a division of the New York State Energy Research and Development Authority (NYSERDA), is a state-sponsored specialized fund that invests in New York State’s clean energy markets. Since its launch in 2013, NYGB has committed over $2.6 billion to projects supporting building decarbonization, clean transportation, energy storage, solar, and other sustainable infrastructure—expected to avoid up to 49.6 million metric tons of CO2e and generate 69.5 million MMBTU in lifetime energy savings.

PowerBank CEO & President Dr. Richard Lu commented “The financing from NY Green Bank for this initial portfolio represents an excellent opportunity for PowerBank and our partners. This transaction reflects PowerBank’s established track record in New York State, and our strong working relationship with NYSERDA. As these projects advance, we’re excited to contribute to the region’s clean energy objectives.”

An interconnection deposit is a financial security (cash or letter of credit) a developer such as PowerBank pays to a utility or grid operator when requesting to connect a new solar power or battery energy storage project funding grid upgrades and project connection costs. These deposits are refundable if a project does not reach commercial operation. Due to the refundability of the deposits, the Loan provides a key revolving source of capital that allows PowerBank to execute on its development pipeline. As projects are monetized or reach commercial operation, PowerBank will be able to redeploy the proceeds of the Loan to additional projects.

The material terms of the Loan are as follows:

• The Loan will be advanced against payment of interconnection deposit payments to local utilities in New York in connection with the Projects;
• Initial principal amount is up to $8 million USD, provided that NYGB in its discretion may increase the principal amount to up to $12 million USD;
• No shares are issuable in connection with the Loan; and
• The Loan is secured against the assets associated with the Projects and the Company has provided a guarantee of payment.