Universal Kraft Canada Fuels Solar Growth with $15 Million Credit Facility

Universal Kraft Canada Renewables, a joint venture between Korkia and Universal Kraft, has secured a significant USD 15 million credit facility, expandable to USD 50 million, from American asset-based lender Crayhill Capital Management. This financial backing is set to accelerate the development of the company's substantial 1.7 GW solar energy project pipeline in Alberta, Canada.

Boosting Alberta's Solar Capacity

This strategic financial arrangement will enable Universal Kraft Canada Renewables to meet the Generator Unit Owner Contribution (GUOC) requirements for its solar energy projects. The GUOC is a crucial refundable payment in Alberta's electricity market, incentivizing the construction of generation facilities near existing transmission infrastructure. The company, recognized as one of Alberta's largest renewable energy developers, aims to bring its ambitious solar projects to operational status, contributing significantly to the province's renewable energy goals.

Key Takeaways

• Significant Funding Secured: A USD 15 million credit facility, with potential expansion to USD 50 million, has been finalized.

• Project Acceleration: The funds will support the development of Universal Kraft Canada Renewables' 1.7 GW solar energy portfolio.

• Strategic Partnership: The facility is provided by Crayhill Capital Management, an asset-based lender.

• Alberta Focus: The financing is specifically for solar energy development within Alberta, Canada.

• Market Confidence: The deal validates the quality of Universal Kraft Canada Renewables' development work and project pipeline.

Expert Endorsements

Daniela Louback, responsible for Canadian Business Development at Universal Kraft, expressed optimism about the facility, stating it validates their development work and positions them to meet rising renewable energy demand. Kristina Sweet, Canadian Country Manager for Korkia, highlighted the company's capabilities and Crayhill's support in accelerating project development. Shweta Kapadia, Managing Director at Crayhill, emphasized the firm's commitment to providing tailored capital solutions for renewable projects, addressing financing gaps in a growing global market.

About the Companies

Korkia is an accelerator of the energy transition, partnering with asset developers, owners, and investors to bring renewable energy to market. Universal Kraft brings over two decades of expertise to the renewable energy sector, developing projects across various technologies and geographies. Crayhill Capital Management LP is a New York-based alternative investment management firm specializing in asset-based investment opportunities.

Sources

• Universal Kraft Canada Renewables secures USD 15 million credit facility for solar energy development, PR Newswire Canada.

• Universal Kraft Canada Renewables Secures $15M Credit Facility for Solar Energy Development, renewableenergymagazine.com.