Sawtelle-based electric vehicle charging company EVgo Inc. last week announced it closed on a $225 million credit facility with a syndicate of global project finance banks, with an option to add $75 million.
EVgo said that the money will be used to fund the deployment of more than 1,500 electric vehicle charging stalls to add to the 4,240 stalls in operation as of March 31.
The company said this is the first-of-its-kind financing in the commercial bank market for charging infrastructure in the United States.
Besides speeding the deployment of the company’s public fast-charging network, the funds are expected to go towards further deployment of EVgo’s dedicated charging hubs business serving autonomous vehicles and other fleet partners. The company indicated funds might also go toward the deployment of charging stalls that do not fall within the scope of its existing debt financing.
“EVgo has built a trusted nationwide public fast charging network and has consistently demonstrated strong operational and financial asset performance,” Badar Khan, EVgo’s chief executive, said in the announcement. “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.”
The facility is provided by a syndicate of global banks led by Tokyo-based Sumitomo Mitsui Banking Corp. as structuring agent, coordinating lead arranger, and joint bookrunner. Montreal and Toronto-based Bank of Montreal, Toronto-based Royal Bank of Canada (parent of City National Bank), and Amsterdam-based ING Bank were joint lead arrangers and joint bookrunners. and Sandton, South Africa-based Investec Bank is a participating lender.
