GS Power Partners Secures $22M in Financing with Amalgamated Bank

Rhea-AI Summary

GS Power Partners (GSPP) has secured a $22 million term financing commitment from Amalgamated Bank (AMAL) for five community solar projects in New York, totaling 25.5 megawatts (MWdc).

The projects include:

• East Road North and East Road South in Lowville, expected to start operations next month
• Little Bow North and Little Bow South in Gouverneur, completed in December 2023
• Fox Road project in Marcy, completed in May 2023

The partnership aims to provide clean energy access to hundreds of New Yorkers through these community solar installations, demonstrating successful public-private collaboration in expanding renewable energy infrastructure.

Positive

• Secured $22 million in term financing from Amalgamated Bank
• Portfolio expansion with 25.5 MW total capacity across five projects
• Three projects already operational, two near completion

Negative

• None.

Insights

Financial Analyst

Amalgamated Bank's $22 million financing commitment to GS Power Partners represents a strategically aligned transaction that bolsters the bank's sustainability-focused loan portfolio. For a bank with $879 million market capitalization, this deal constitutes 2.5% of market value – significant enough to impact financial performance without presenting outsized risk.

The transaction's structure minimizes risk exposure by financing five community solar projects at different completion stages, with three already operational and two nearing completion. This approach bypasses early-stage development uncertainties while securing term financing that likely provides predictable cash flows to Amalgamated's lending portfolio.

The bank demonstrates prudent diversification by expanding its clean energy financing footprint in New York's community solar market, which typically generates steady returns through long-term power purchase agreements. This aligns perfectly with Amalgamated's existing sustainability-focused banking strategy while potentially enhancing net interest margins in their loan book.

From a competitive positioning standpoint, having a dedicated Climate Lending division (as evidenced by Bill Peterson's director role) indicates this transaction is part of a deliberate strategic direction rather than an opportunistic one-off deal. This specialized focus may create differentiation advantages in attracting both ESG-conscious depositors and quality borrowers in the renewable sector.

Energy Infrastructure Specialist

This financing package covers five distributed generation solar assets totaling 25.5 megawatts across New York state, representing a meaningful portfolio of community solar projects. The geographic clustering creates operational efficiencies while still providing asset diversification across five separate installations, reducing single-point failure risks for the lender.

The projects' completion status adds significant value to this transaction – three facilities are already operational (Fox Road and the Little Bow projects), with two more launching within a month. This means Amalgamated is financing de-risked assets already generating revenue rather than taking on construction risk, providing immediately accretive returns.

Community solar projects typically generate revenue through subscription models where multiple customers purchase portions of the generated electricity, creating more stable cash flow patterns than single-offtaker structures. This revenue diversity makes these assets particularly attractive financing targets for lenders seeking stable, long-term returns.

New York's community solar market benefits from supportive state policies and incentive structures that enhance project economics. The strategic partnership allows Amalgamated to capitalize on the state's clean energy transition while serving hundreds of residential customers who gain renewable energy access through these projects – creating both economic returns and community impact aligned with the bank's mission-driven approach.

Partnership with Amalgamated Bank and GS Power Partners funds five community solar projects in NY

STAMFORD, Conn. & NEW YORK--(BUSINESS WIRE)-- GS Power Partners (GSPP), a leading Independent Power Producer in the distributed generation (DG) solar sector, today announced it has secured a $22 million term financing commitment from Amalgamated Bank (Nasdaq: AMAL). The financing package encompasses five GSPP community solar projects in New York, totaling 25.5 megawatts (MWdc).

GS Power Partners' Fox Road project in Marcy, New York. (Photo: Business Wire)

“We are pleased to announce this financial close, alongside our partnership with Amalgamated Bank,” said Jason Kuflik, CEO of GS Power Partners. “As we continue to expand GS Power Partners’ portfolio in key geographies such as New York, our focus on investor returns remains a top priority. Moreover, we continue to construct and manage solar projects that benefit energy customers and advance the energy transition.”

The partnership between GSPP and Amalgamated Bank covers five community solar projects. East Road North and East Road South in Lowville, New York are anticipated to commence operations in the next month. The three other projects include Little Bow North and Little Bow South in Gouverneur, New York, which were completed in December 2023, and the Fox Road project in Marcy, New York, which was completed in May 2023. In total, these five projects will generate 25+MW of clean energy annually.

Bill Peterson, Director of Climate Lending at Amalgamated Bank remarked: “We appreciate the opportunity to expand our relationship with GSPP in addition to helping hundreds of New Yorkers gain access to renewable energy and the ability to achieve a more sustainable living environment. These community solar projects are a great example of how public-private collaboration can grow the clean economy and make a difference in people’s lives.”

Winthrop & Weinstine served as the Lender Counsel.

About GS Power Partners
GS Power Partners, a leading Independent Power Producer (IPP), acquires, develops, finances and owns distributed generation (DG) commercial and industrial (C+I) and community solar projects. Since the company’s founding in 2015, GS Power Partners has been fully focused on project development in the DG solar sector. Backed by CVC DIF, a global investment firm with almost $20 billion in assets under management, the company maintains a portfolio of 300+ megawatts of solar assets, mainly concentrated in the Northeast and Midwest. GS Power Partners advances the clean energy transition through responsible investments and long-term partnerships. For more information, please visit www.gspowerpartners.com.

About Amalgamated Bank
Amalgamated Bank, the wholly owned banking subsidiary of Amalgamated Financial Corp. (Nasdaq: AMAL), is a mission-driven New York-based full-service commercial bank and a chartered trust company with a combined network of six branches in New York City, Washington D.C., San Francisco, and Boston. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Since their founding in 1923, Amalgamated Bank has used the power of banking to create impact and empower organizations and individuals to advance positive social change. Amalgamated Bank advocates alongside those working to make the world more just, compassionate, and sustainable. Amalgamated Bank is the country’s largest B Corp^® bank and a proud member of the Global Alliance for Banking on Values.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250311666654/en/

Media Contacts:

Ellen Backus

For GS Power Partners

612-616-2991

ellen@cleanterrateam.com

Ayele Ajavon

For Amalgamated Bank

929-979-5811

media@amalgamatedbank.com

Source: GS Power Partners

FAQ

What is the value of AMAL's financing commitment to GS Power Partners' solar projects?

Amalgamated Bank (AMAL) has committed $22 million in term financing for five GSPP community solar projects in New York.

How many megawatts will GSPP's New York solar projects generate?

The five community solar projects will generate 25.5 megawatts (MWdc) of clean energy annually.

When will GSPP's East Road solar projects in Lowville, NY begin operations?

The East Road North and East Road South projects in Lowville are expected to commence operations within the next month.

Which GSPP solar projects funded by AMAL are already operational?

The Little Bow North and South projects in Gouverneur (completed December 2023) and Fox Road project in Marcy (completed May 2023) are already operational.