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Broad Reach closes US$160 million financing for battery storage systems
MUFG and Deutsche Bank lead funding for US lithium-ion battery projects with total capacity of 390MWh
Michael Marray 17 Aug 2022

Broad Reach Power has closed a US$160 million project financing for 17 operating battery energy storage systems in Texas and one in California.

Deutsche Bank (New York Branch) and MUFG Bank acted as coordinating lead arrangers and joint bookrunners in the deal. MUFG acted as administrative agent while Deutsche Bank Trust Company Americas acted as depositary bank and collateral agent.

Totalling 390 megawatt-hours, the projects are utility-scale assets using lithium-ion technology from a diverse pool of manufacturers.

Broad Reach owns a 21-gigawatt portfolio of utility-scale battery storage and renewable power projects across the United States.

Broad Reach develops and operates battery storage projects to perform under an optimized revenue stack, which includes a combination of contracts, financial hedges and merchant capacity selling energy and ancillary services in the market.

“This is a marquee debt financing transaction in the battery storage sector, and we at Broad Reach look forward to advancing innovative ways to finance our large pipeline of projects,“ says Nitin Gupta, senior vice-president, finance and M&A.

Broad Reach Power is a utility-scale battery storage platform based in Houston, Texas. It is backed by energy transition investors EnCap Investments, Apollo Global Management, Yorktown Partners and Mercuria Energy.

Milbank represented Broad Reach in the deal while Paul Hastings represented the lenders.

Also in late July, Milbank advised Masan Group, one of Vietnam’s largest private companies, in the Series B equity funding round of fast-charging battery start-up Nyobolt.

Masan led the funding round through its subsidiary H.C. Starck Tungsten Powders, a tungsten supplier based in Germany.

United Kingdom-based Nyobolt is pioneering niobium and tungsten-based battery anode technology which has demonstrated superior performance over other lithium-ion batteries. The technology is expected to enable electric vehicles to charge within minutes.

The company is working to commercialize super-fast-charging batteries which offer long-term capacity retention, strong energy density and high heat resistance.

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