EVgo, one of the largest providers of public fast charging infrastructure in the U.S., announced that it has closed on a senior secured, non-recourse credit facility with top tier global project finance banks in the amount of $225 million with optionality to increase the size of the financing by $75 million to fund additional growth (the “Facility”).
The Facility was oversubscribed and is a first-of-its-kind financing in the commercial bank market for charging infrastructure in the United States.
The Facility provides EVgo with additional leverage capacity to fund growth beyond debt financing currently in place. Proceeds from the Facility will be used to accelerate EVgo’s nationwide deployment of additional high-powered charging infrastructure by more than 1,500 stalls, including the expansion of EVgo’s dedicated charging hubs business serving autonomous vehicles and other fleet partners as well as EVgo’s public fast charging network, with the flexibility to include stalls that do not fall within the scope of EVgo’s existing debt financing.
The continued growth of EVgo’s network is expected to further expand its position as an industry leader in public fast charging.
“EVgo has built a trusted nationwide public fast charging network and has consistently demonstrated strong operational and financial asset performance,” said EVgo CEO, Badar Khan. “This facility will provide incremental low-cost capital to enable us to increase our infrastructure buildout, which will ultimately provide EV drivers more fast charging choices. As the first of its kind in the United States, the Facility reflects continued and growing confidence in both EVgo’s leadership position and in the future of the EV charging industry by financial markets.”
“This groundbreaking financing transaction sets a precedent for expanding high-power charging infrastructure by leveraging debt capital,” said Francine Sullivan, EVgo CLO & EVP Corporate Development. “Such resounding support from the global project finance bank market marks another milestone in EVgo’s plan to enhance value with our growing industry-leading fast charging solutions. We look forward to partnering with our banking partners to continue to grow our leadership position into the future.”
The Facility is provided by a syndicate of top-tier global banks led by SMBC as Structuring Agent, Coordinating Lead Arranger, and Joint Bookrunner, and Bank of Montreal, Royal Bank of Canada, and ING Bank NV as Joint Lead Arrangers and Joint Bookrunners, and Investec Bank Plc as a participating lender. The opening of the commercial bank project financing market as a source of capital for public fast charging is an important milestone reflecting the maturity of the Company, the profitability of the EVgo network, and confidence in the Company’s management.
“This financing demonstrates SMBC’s continued ability to lead innovative financing solutions for clients in emerging sectors across the broader infrastructure landscape,” said Juan Kreutz, SMBC Americas Head of Global Structured Finance. “We are proud to partner with an industry leader like EVgo on this pioneering financing as the company expands its network of accessible charging infrastructure throughout the U.S.”
