Expands Access to Affordable, Clean Energy in New York State
ROCKY HILL, CT, May 18, 2020 – Inclusive Prosperity Capital, Inc. (IPC), a mission-driven specialty finance organization working at the intersection of community development, clean energy finance, and climate impact is pleased to announce the closing of a $25 million transaction with NY Green Bank, a division of The New York State Energy Research and Development Authority (NYSERDA). The transaction will enable IPC to deploy capital into underserved clean energy and energy efficiency markets across its entire portfolio of products. IPC’s products deliver savings on distributed solar PPAs and accessible rates and offerings on debt investments for single and multifamily residential properties as well as non-profit, commercial, municipal, institutional, and small infrastructure projects.
Kerry O’Neill, CEO, IPC said, “IPC was created to scale clean energy deployment in the very markets that need it most by combining mission-aligned and market-rate capital into a unique impact investment platform. IPC is thrilled to take this approach in New York State by partnering with NY Green Bank to unlock energy savings, locally-driven economic development, and improved health outcomes in support of the NY’s policy goals. We’ll use this investment to forge new partnerships with developers and mission-aligned organizations across New York that drive capital into the very communities that are most in need of recovery.”
A spin-out of the Connecticut Green Bank, the IPC team has deployed $450 million of clean energy projects in underinvested markets to date, including low-to-moderate income neighborhoods and underserved credits. IPC is leveraging this successful track record to expand into the New York State market and nationwide. The transaction with NY Green Bank marks IPC’s first investor for projects outside of Connecticut. It also leverages a catalytic $10 million guarantee from The Kresge Foundation.
“IPC knows how to balance investor requirements with the capital needs of developers. This means we are uniquely positioned to scale impactful investments. The timing of this facility is significant, and IPC is primed to deliver critical investment into community and clean energy infrastructure projects,” said Chris Magalhaes, Chief Investment Officer, IPC.
IPC’s custom fund platform and unique market offering is made possible through collaboration with key mission-aligned partners, including The Kresge Foundation, which has provided operating support and a well-structured credit enhancement that investors can leverage to extend impact without sacrificing on risk. Duane Morris LLP has been instrumental as IPC’s legal counsel for this $25 million credit facility, and in advising IPC on new market entry.
Alfred Griffin, President, NY Green Bank said, “The financing provided by NY Green Bank to Inclusive Prosperity Capital will be used to advance projects that expand and ensure clean energy access for all communities in support of Governor Andrew M. Cuomo’s climate and clean energy goals. This transaction will help provide underserved communities with access to green, renewable resources, reducing carbon emissions, and delivering cleaner air across New York State.”
IPC uses a partnering strategy to work with clean energy leaders and community development organizations across the US to identify investment opportunities. These opportunities span local, regional, and national markets. Despite the challenging economic times brought on by the Coronavirus – and in such an uneven manner – IPC believes that clean energy investment in underinvested neighborhoods should be part of the recovery efforts for communities hit the hardest.
About Inclusive Prosperity Capital:
Inclusive Prosperity Capital, Inc. (“IPC”) is a not-for-profit investment fund scaling clean energy financing solutions that channels investment capital to program partners in communities that need it most. As a spin-out and strategic partner of the Connecticut Green Bank, IPC is focused on scaling its work in Connecticut and expanding its successful model nationwide by accessing mission-driven capital and partnerships. IPC operates at the intersection of community development, clean energy finance, and climate impact. We believe everyone should have access to the benefits of clean energy, helping to deliver Inclusive Prosperity.
About NY Green Bank:
A division of NYSERDA, NY Green Bank is a state-sponsored, specialized financial entity working with the private sector to increase investments into New York’s clean energy markets, creating a more efficient, reliable and sustainable energy system in support of Governor Cuomo’s Green New Deal and New York’s Climate Leadership and Community Protection Act.