Renewable energy firm SunEdison and Goldman Sachs-managed infrastructure fund have formed $1bn warehouse investment vehicle, to fund the construction and acquisition of renewable assets.
Named WSIP Warehouse, the investment vehicle will receive $300m West Street Infrastructure Partners III (WSIP) and affiliates.
Financial institutions, including Morgan Stanley, Bank of America and Deutsche Bank will provide $700m in debt.
SunEdison will have an option to expand the investment facility up to $1bn, subject to certain conditions.
The WSIP Warehouse complements SunEdison’s existing $1.5bn First Reserve Warehouse and $500m TerraForm Private Warehouse.
SunEdison chief financial officer Brian Wuebbels said: "SunEdison’s new $1bn warehouse provides incremental capacity for SunEdison to construct and hold assets in advance of drop down to TerraForm Power.
"Our new warehouse supports SunEdison’s 2016 guidance for growth, reinforces the depth of demand for investor participation in SunEdison’s warehouse platform and provides repeatable and scalable funding for the future."
TerraForm Power will have an option to purchase the operating assets, which are either constructed or acquired through the WSIP Warehouse.
Goldman Sachs Merchant Banking Division Infrastructure Investment Group for the Americas head Edward Pallesen said:"We are excited to partner with SunEdison as we seek to expand our portfolio of investments in solar and wind projects."