Rabobank Leads Pathway Power's Innovative Interconnection Financing Facility

• The facility, a first of its kind, will support Pathway Power's 6-gigawatt pipeline of solar and storage projects in major U.S. electricity markets by providing efficient capital for projects in various stages of the interconnection queue.
• The boom in renewable energy projects has led to lengthy approval processes and rising costs for energy developers entering the interconnection queue.
• Rabobank acted as the sole lead arranger on the transaction.

NEW YORK, Nov. 4, 2024 /PRNewswire/ -- Rabobank, a premier global food and agribusiness bank and a leading financier of the energy transition, announced today the closing of an innovative credit facility for Pathway Power designed to support renewable energy projects looking to connect to the U.S. electricity grid.

Pathway Power, a large-scale renewable energy project developer, is building a next-generation independent power producer focused on utility-scale renewable energy generation and battery storage projects that provide reliable, resilient and high-value clean energy. The facility, a first of its kind, will support the development of Pathway Power's 6-gigawatt pipeline of solar and storage projects in major electricity markets across the United States.

"This innovative letter of credit facility enables Pathway to advance a significant pipeline of renewables and battery storage projects through Independent System Operator (ISO) interconnection queues across America under an efficient, flexible structure," said Bill Gulley, managing partner and chief investment officer at Pathway. "The Pathway team is excited to work with the outstanding energy transition and project finance teams at Rabobank again."

As of the end of 2023, there were 12,000 projects seeking grid interconnection across the United States. The combined capacity of these projects is more than double the installed capacity across the country's power plant fleet, according to Lawrence Berkeley National Laboratory. This boom in new electricity projects has led to significant delays in connection approvals. On top of that, grid operators are making it more expensive for energy developers to enter the interconnection queue.

Tapping into their deep expertise in the U.S. renewable energy market, Rabobank and Pathway carefully designed this customized facility to provide efficient capital for projects in various stages of the interconnection queue—a multi-year process governing how new electricity projects connect to the grid.

Senior banker Josh Dale, head of energy transition coverage at Rabobank, said, "We're thrilled to collaborate with Pathway Power to structure a bespoke facility to advance its robust pipeline of development projects in a cost-efficient way while insulating Rabobank from development risk."

Norton Rose Fulbright LLP served as Rabobank's legal counsel. Foley & Lardner LLP served as legal counsel to Pathway Power.

About Rabobank
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in 37 countries worldwide. Founded more than 125 years ago, Rabobank today is one of the world's largest banks with over $678 billion in assets. In the Americas, Rabobank Wholesale Banking North America is a premier corporate and investment bank to the food, agribusiness, commodities and energy industries. To learn more, visit www.RabobankWholesaleBankingNA.com.

About Pathway Power
Headquartered in San Diego and led by a team of industry veterans who have built three energy platforms together, Pathway Power is developing, constructing and operating a diversified portfolio of solar, wind and battery storage projects in major Regional Transmission Organizations, emphasizing enduring partnerships and a differentiated approach through the integration of data, analytics and AI. Addressing the evolving challenges of the power grid and energy transition, Pathway's commitment is to provide reliable, resilient and high-value clean energy precisely when needed. For more insight, visit www.pathway-power.com.

SOURCE Rabobank, N.A.

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