STRUCTURED FINANCE
Pacifico Energy - Skillful Originator of Project Funding
Pacifico Energy has experienced incredible growth in the last decade, due in large part to the quality and size of our projects, and our ability to raise both equity and debt funding.
Since 2009, Pacifico Energy has raised over $5 billion USD in equity and debt funding.
Creating partnerships with distinguished financial institutions globally
Extensive Financial Resources
We possess both the financial capabilities to complete projects and the flexibility to assemble a variety of transaction structures. Our typical projects require substantial capital and successfully attract the participation of top-tier international banks and select investors. The key to raising finance is always going to be the underlying strength of the projects—the ability to bring to market a bankable project that is significantly de-risked, accounts for every detail, and delivers attractive returns to investors and lenders.
Final Stages of Development
During the final stages of project development and before construction begins, we take the lead to arrange project financing. This involves finance agreement negotiation, tax structuring, leading due diligence activities, and financial modeling.
THE RENEWABLE INFRASTRUCTURE FUND
Through its affiliate, Pacifico Energy Solar Fund GK, Pacifico Energy operates as general partner to infrastructure funds in Japan that include institutional investors from leading Japanese companies. Pacifico Energy acts as the sponsor and asset manager of this portfolio of select solar assets located throughout Japan.
Pacifico Energy successfully completed the launch of its first solar investment fund, Pacifico Energy Solar Fund I, totaling ¥15.5 billion. The fund financed the purchase of five Japanese solar power plants (producing over 100MW) located in Eastern and Western Japan.
In addition to investing in and managing the fund, Pacifico Energy also provides asset management services to solar plants, deploying its knowledge and experience gained from developing and constructing solar projects across Japan. The fund will grow to over 1GW of projects with a ¥150 billion cumulative investment over the next few years. Over 75 percent of the projects that are to go into the fund were originally developed and constructed by Pacifico Energy.
Pacifico's Structured Financing Capabilities
Pacifico provides a range of structured finance options, including:
-
Power Purchase Agreements (PPAs) – A long-term contract where customers pay for electricity generated on-site without owning the asset.
-
Debt Financing – Loans or bonds secured against project cash flows.
-
Tax Equity Financing – Investors provide capital in exchange for tax incentives related to renewable energy.
-
Lease Structures – Customers lease equipment instead of purchasing outright.
Under a PPA, Pacifico develops, owns, and operates the power generation asset, while the customer agrees to buy the generated electricity at a fixed or variable rate over a set term. This allows businesses to access onsite power without upfront capital investment and benefit from predictable energy costs.
-
Structured finance refers to customized financial solutions that enable the development of onsite energy projects with minimal upfront costs. This includes financing mechanisms such as power purchase agreements (PPAs), tax equity investments, debt financing, and capital markets funding to make projects financially viable.
Tax incentives, such as the Investment Tax Credit (ITC) and Production Tax Credit (PTC), help reduce project costs by allowing investors or developers to claim tax benefits. Tax equity financing enables Pacifico to monetize these incentives, making projects more affordable for end users.
-
Debt Financing involves borrowing funds, typically through loans or bonds, to finance a project, with repayment based on future revenues.
-
Tax Equity Financing allows investors to fund projects in exchange for tax benefits, making it attractive for renewable energy development.
-
Capital markets provide access to institutional investors, green bonds, and securitized energy assets, allowing large-scale projects to secure funding at competitive rates.
Understanding the Economics
Pricing is influenced by:
-
Project capital costs (equipment, installation, and permitting)
-
Financing structure (debt vs. equity)
-
Energy production guarantees
-
Market interest rates and creditworthiness
-
Tax incentives and depreciation benefits
-
Yes. Through structured finance options like PPAs, leases, and third-party ownership models, businesses can benefit from onsite power generation without large upfront costs.
Structured finance solutions, such as fixed-rate PPAs and optimized debt structures, provide cost predictability and protection from utility rate increases, ensuring long-term financial benefits for customers.