In August, we provided an introduction to DOE’s Loan Programs Office for those we haven’t worked with before, and a refresher for those we have worked with. Building on that broad overview, we’ll be publishing periodic “Getting to Know LPO” blogs that dive into a particular issue. For this edition, we’re focusing on how LPO can work with other financial institutions that are interested in investing in LPO projects.
There are several ways to work with LPO:
- Pari-passu Senior Secured or Subordinated Co-Lending with DOE on a non-guaranteed basis
- Guaranteed Third Party Lender (with an up-to-90% guaranteed loan) – either as the Lead Lender or participation in a group.
- And while not involving LPO directly, as additional equity for LPO borrowers
LPO offers unique value to its projects that many other financial institutions cannot or will not provide. While most other lenders lack the technical expertise or the time to evaluate innovative technologies, LPO has a deep bench of technical experts on staff with specialized expertise and a mission to evaluate emerging technologies. LPO is also committed to the long-term success of the project, with a Portfolio Management Division that proactively monitors projects through construction, start-up, and operations and maintenance through the life of the loan.
To provide additional context for potential investors, LPO has published “Investing with LPO” to outline at what points in a transaction other financial institutions can engage, as well as a more in-depth overview of LPO’s investment team and process.
Original source can be found here.
