Green Campus, Citi Close Facility to Fund Energy Projects
Published June 21, 2012
Green Campus Partners announced the closing of a $50 million warehouse funding facility with Citi that will give GCP dedicated capital access to fund energy efficiency and renewable energy projects. This collaboration between GCP and Citi will enable the implementation of potentially hundreds of millions of dollars in energy conservation and renewable power generation measures.
According to GCP, many organizations operate with outdated energy infrastructure that is significantly less efficient and less cost-effective than systems that are now available through more advanced technologies. As these organizations explore alternatives for renewing their aging facilities, they often identify multiple areas of waste and inefficiency that could benefit from the implementation of energy efficiency measures, including the possible use of renewable energy. While these measures typically generate sufficient energy and operational savings to recoup the required upfront capital investment and provide attractive returns over time, such projects are often blocked by a lack of access to funding.
To help overcome these challenges, GCP and Citi have partnered to create a $50 million revolving line of credit that will be utilized to provide upfront capital for energy efficiency and renewable energy projects in the public sector. By providing streamlined access to upfront capital, both GCP and Citi expect to expand their respective capabilities as energy finance providers for universities, healthcare organizations and state and local governments. Innovative financing mechanisms such as the facility launched today will help unlock investments in energy efficiency and clean energy projects and will facilitate reductions of energy consumption and carbon footprints.
Ward Marsh, Managing Director and Head of Citi’s Municipal Securities Division, said “Replacing outdated energy and infrastructure assets with more efficient equipment is an effective way to control costs and reduce greenhouse gas emissions, but financing for these projects can be a real challenge. This lending relationship with GCP demonstrates our ongoing commitment to energy efficiency and renewable energy projects in the public sector.”
Bob Anderson, CEO of GCP, said “Energy costs represent a significant portion of any organization’s operating expenses. Reducing these costs and becoming more efficient are critical objectives for the success of any organization. Improving the environment along the way is an added benefit. GCP is focused on helping its clients convert energy efficiency ideas into solutions and our collaboration with Citi will allow us to better serve our clients and the environment.”
Green Campus Partners is an energy project development firm with expertise in strategic planning, project management, performance contract financing, federal ESPC financing, project finance and asset & portfolio management.