NineDot Energy, a developer of community-scale clean energy projects backed by global investment firm Carlyle, closed on a new $85 million construction-to-term debt facility. Provided by CIT and SMBC, the facility supports the construction and operation of 11 of NineDot’s battery storage sites in the Bronx, NY; Staten Island, NY; Queens, NY; and Long Island, NY. Combined with NineDot’s existing equity capital base, this new funding solidifies the company’s position as a distributed community energy developer in the New York City metropolitan region, making the local electricity grid more robust while facilitating New York City’s and New York’s push for decarbonization by integrating more clean energy into the grid during times of peak demand.

“Completing this debt financing is another major accomplishment in a year of accomplishments, for NineDot Energy,” David Arfin, CEO and co-founder of NineDot Energy, said. “Just about four months ago, we unveiled our first-of-its-kind battery storage site in the Bronx. With this project finance facility, we will accelerate the growth of our community energy pipeline and implementation, bringing the benefits of distributed, local battery storage solutions to the broadest range of organizations and communities in the New York City region. Along the way, we accelerate the retirement of old ‘peaker plants’ while transitioning to a more environmentally-just urban energy grid.”

“We are thrilled to provide this structured finance program to NineDot Energy,” Mike Lorusso, managing director and group head of the power and energy business of CIT, a division of First Citizens Bank, said. “At CIT, we are committed to lending our capital to creative entrepreneurs who are the backbone of our national energy transition. From our initial meeting, we’ve been impressed by how NineDot brings its knowhow and strategy to real projects, finding the right sites to develop, the right landowners and partners to work with, and the right solutions for the complex maze of energy and safety rules and regulations. We look forward to celebrating the opening of many new NineDot projects that are enabled by this financing.”

“NineDot Energy is exactly the kind of borrower we look for: creative, committed, serious and diligent, working on big important projects while understanding the lender’s perspective and the need to deliver results on time and on budget,” Juan Kreutz, managing director and co-head of global structured finance in the Americas for SMBC, said. “We are excited to see the projects built with this new capital come to fruition and make a meaningful contribution to New York’s energy goals.”

“By leveraging its strong equity capital position, we believe NineDot Energy can do more for the energy infrastructure faster,” Pooja Goyal, chief investment officer of Carlyle’s infrastructure group, said. “This milestone is a testament to NineDot Energy’s role in transitioning to a cleaner, more reliable grid and the power of Carlyle’s broad network in supporting growth for our strategic partners through bespoke value creation plans.”