Partners Group-backed Dimension Energy has secured a USD 150m revolving credit facility with Deutsche Bank to advance its pipeline of community solar projects, executives for the developer confirmed to Infralogic.

The three-year rotating credit facility will comprise cash and letters of credit to advance Dimension’s near-term pipeline toward the construction phase, Ryan Lidell, Dimension’s chief financial officer told Infralogic.

“The borrowing base of this facility is essentially secured by Dimension’s current pipeline of in-construction and operating assets. We’ll also be using the proceeds and availability of the facility to fund our pre-construction and development activities for other projects in our near-term pipeline,” Liddell said.

The agreement is Deutsche Bank’s first corporate credit facility intended for use solely on community solar projects in the pre-notice to proceed stage.

“Dimension is a premier Independent Power Producer and the company’s proven track record of delivering value to communities and shareholders make it a perfect fit for our inaugural pre-NTP financing in community solar” Jeremy Eisman, Head of infrastructure and energy financing at Infrastructure and Energy Bank, said in a statement.

Liddell said that the credit line allows Dimension to tap into the value of its advanced and operating projects at an early stage, in order to pursue its ambitious growth targets.

Having built up an operational portfolio of around 250 MW, Dimension this year announced plans to deploy USD 3bn and grow its total operating capacity to 1 GW over the next five years.

The revolving structure of the agreement will allow Dimension to re-allocate resources from the credit facility toward new projects, as the existing pipeline advances to the construction phase, Rafael Dobrzynski Dimension’s co-founder and CEO said.

“As a project gets into the construction phase, we transition that project into the construction facility. And that construction facility repays back the loan of Deutsche Bank. So then you can redeploy those funds toward another pre-NTP expense,” Dobrzyinski said.

Liddell said the credit facility stands as a vote of confidence by Deutsche Bank in Dimension’s track record. But, he said it also reflects a growing interest in the community energy sector by major lenders.

“The progression of community solar within the large banks has grown leaps and bounds, I think over the last few years, and this would be another testament to that,” Liddell said.

Dimension did not rely on outside financial advisors on the transaction.

Holland and Knight served as legal advisor to Dimension on the transaction. White & Case was legal advisor to Deutsche Bank.