SDCL among investors financing BlocPower’s US projects | News

SDCL Energy Efficiency Income Trust (SEEIT) has participated in the financing of US projects being developed by BlocPower’s subsidiary.

The UK-listed firm said it has agreed to finance the design, acquisition and installation of energy efficiency solutions across various buildings for BlocPower Energy Services 2, by contributing 10% of an $80m (€77m) loan facility.

BlocPower provides energy efficiency solutions such as heat pumps, LED lighting, solar photovoltaic and battery storage, to decarbonise and electrify buildings. The company targets small and medium-sized enterprises and low-to-moderate income communities in New York State initially, with a plan to expand into other states.

BlocPower’s investors include Goldman Sachs, Kapor Capital, Microsoft’s Climate Innovation Fund, and Andreessen Horowitz.

SEEIT said the loan will be used by BlocPower to finance the capex of new projects in the US, and SEEIT will benefit from “long-term stable cashflows, through contracted debt repayments amortizing over 10-12 years and with a fixed interest rate at the time of funding linked to the credit support provided for each project”.

The loan facility will be secured by a first priority lien on the assets of the borrower and all equity interests of the borrower’s parent, plus a pledge on the collections account, said SEEIT.

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