Debt Capital Marketplace Introduced by Crux
Crux Launches Debt Capital Marketplace for Clean Energy Financing
In a significant move for the clean energy sector, Crux has unveiled a new debt capital marketplace designed to streamline the process of securing financing for clean energy projects. The platform, which has been in beta testing for several months, now boasts over 80 companies using it.
The marketplace, launched in the spring of 2023, initially focused on buying and selling clean energy tax credits. However, with the passage of the Inflation Reduction Act in 2022, clean energy developers and manufacturers were allowed to transfer tax credits, creating a new financing mechanism. This development has led Crux to expand its platform to include a debt capital marketplace.
The debt capital marketplace is designed to present all necessary information to lenders in a standardized way, aiming to build a deep and liquid market for various types of construction, bridge, and other capital financing. Johnson, Crux's CEO, estimates that the debt financing market is more than $230 billion.
The market for tax transfers has seen rapid growth, with the total deal volume ballooning to nearly $30 billion by the end of 2024, up from just $9 billion at the end of 2023. Lenders have issued over $1 billion worth of term sheets, and currently, there are more than $300 million of loans under negotiation on the platform.
One deal has already closed on the platform, a multi-million-dollar debt financing deal for a manufacturer. Banks and institutions participating in Crux's clean energy debt product credit marketplace include Siemens Financial Services, EnBW, and MPC Capital.
The launch of the new debt capital marketplace coincides with electricity demand growth and a wave of investment in domestic supply chains for energy transition materials and equipment. Johnson believes that software can facilitate transactions in an entirely different way to build a deep and liquid market for other types of financing.
Data and underwriting information for over 250 developers and manufacturers already active on the tax credit side of the Crux platform can be made accessible to new capital providers. The marketplace offers financing for development, construction, and bridge loans, and it filters options for lenders based on their specific requirements.
Crux raised a $18.2 million Series A round in early 2024, following which they started working on the debt capital marketplace. The new marketplace for clean energy debt products beyond transferable tax credits is set to revolutionize the financing landscape for the clean energy sector.
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