Macquarie Asset Management and Sol Systems have jointly announced a substantial $85 million debt investment to support the construction and operation of five utility-scale solar projects across Illinois and Ohio. This investment signifies the initial phase of a larger collaboration aimed at enhancing renewable energy infrastructure in the United States.

Strategic Investment in Renewable Energy

The $85 million investment, provided by Macquarie Asset Management on a fully bilateral basis, comes in the form of a six-year term loan facility. It is subordinated to senior debt and tax equity, and is secured against Sol Systems’ ownership interest in the solar projects. These projects are anticipated to be completed by the end of 2025 and will generate revenue under long-term, fixed-price power purchase agreements with a leading software services provider, known for its financial stability.

Harlan Cherniak, Head of Infrastructure Debt in the Americas for Macquarie Asset Management, expressed enthusiasm about this new partnership. “We are excited about the beginning of our partnership with Sol Systems. The investment aligns with our strategy of providing customized capital structure solutions to top-tier financial partners and strategic infrastructure sponsors, as well as our ongoing commitment to accelerate the decarbonization of the US power and transmission grid,” Cherniak stated.

Sol Systems’ Role in Accelerating Sustainable Energy

James Machulak, Senior Vice President of Finance and Operations at Sol Systems, also highlighted the strategic importance of this financing. “We are thrilled to partner with a leader in infrastructure finance such as Macquarie Asset Management and to have closed this highly creative transaction. The financing will help Sol Systems continue working towards its goal of accelerating an equitable transition to a sustainable energy future,” said Machulak.

Since its establishment in 2008, Sol Systems has been a pivotal force in the renewable energy sector, having financed or developed over $2 billion in solar projects and currently operating and building over 2 GW of projects.

Implications for the Renewable Energy Sector

This investment by Macquarie Asset Management and Sol Systems not only boosts their respective portfolios but also plays a crucial role in promoting sustainable energy practices across the Midwest. The projects are expected to contribute significantly to the local economies, create jobs, and provide environmentally friendly power solutions to thousands of residents.

Future Prospects and Market Impact

As both companies continue to forge pathways in renewable energy, their joint ventures like this one are likely to set benchmarks in the industry, fostering further investments and innovations in renewable energy across the United States and globally.

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