PowerBank Corporation, along with its subsidiaries, has entered into a loan agreement with NY Green Bank for a revolving credit facility with an initial principal amount of up to $8 million. The financing will be used to fund interconnection deposits required by utilities to complete the grid interconnection process for solar and battery energy storage system (BESS) projects in the state of New York. These deposits are refundable if a project does not reach commercial operation.
The loan is intended to support an initial portfolio of up to 50 MW of distributed solar and BESS projects, with additional projects to be added as they reach readiness. The refundable nature of these deposits allows the loan to function as a revolving source of capital. As projects achieve commercial operation or are monetised, proceeds can be redeployed toward additional developments.
Additionally, the loan will be advanced specifically against interconnection deposit payments made to local utilities in New York. The initial principal amount of up to $8 million may be increased at NY Green Bank’s discretion to as much as $12 million. No shares will be issued in connection with the facility. The loan is secured against the assets associated with the projects, and PowerBank Corporation has provided a payment guarantee to support the arrangement. Furthermore, it is expected to provide low-cost capital to accelerate the expansion of the company’s independent power producer portfolio.
