- Bilateral financing for a 1.2 GW combined cycle gas turbine asset to power energy-intensive infrastructure
Today, Macquarie Asset Management announced it has provided a $US450 million bilateral facility to Sandow Lakes Energy Station ("SLES"), supporting the construction of a 1.2 GW combined cycle gas turbine ("CCGT") asset in Lee County, Texas. This bespoke financing solution enables the borrower to secure essential long-lead time equipment, including two Siemens SGT6-9000HL gas turbines, advancing the development of a new power project designed to supply electricity to energy-intensive infrastructure.
The exponential expansion of digital infrastructure in turn has resulted in the need for additional energy generation. As the power and transmission grids strive to maintain sufficient capacity and balance intermittent generation, demand for CCGT equipment has surged, with the timeline and delivery queue for new orders extending into the 2030s.
Macquarie Asset Management has structured an innovative facility supporting the procurement of critical long-lead time equipment and site works in parallel with digital infrastructure development, enabling SLES to provide certainty on the timing of power availability to energy-intensive offtakers.
"We are excited to deliver a financing solution that addresses the unique challenges of today's power and digital infrastructure markets," said Harlan Cherniak, Head of Americas Infrastructure Debt at Macquarie Asset Management. "This $US450 million facility reflects the continued strategic expansion of our U.S. infrastructure debt business as we continue to establish the Credit & Insurance division as a global leader in the essential asset-based credit market."
"This transaction underscores our commitment to supporting experienced management teams and sponsors with innovative solutions that enable the growth of digital infrastructure," said Matthew Sweeney, Managing Director at Macquarie Asset Management. "Our extensive infrastructure expertise makes us the logical partner to provide a financing solution that addresses the unique demands being placed on the electric grid."
Macquarie Asset Management's Credit & Insurance division is a global platform with approximately $US222 billion in assets under management.1 The platform offers focused expertise and solutions across the liquidity, risk, and return spectrums and has approximately $US40 billion of private credit assets under management.2
About Sandow Lakes Energy Company
Sandow Lakes Energy Company is an independent power developer focused on delivering reliable, efficient and sustainable energy infrastructure in Texas and beyond.
Other than Macquarie Bank Limited ABN 46 008 583 542 ("Macquarie Bank"), any Macquarie Group entity noted in this document is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
