energy insights

DSD Secures $238 Million in Long-Term Financing for 233 MW of Solar Energy

Co-led by First Citizens Bank, MUFG, and Nomura, DSD refinances warehouse debt and optimizes structure

SCHENECTADY, N.Y. — August 26, 2025 — DSD Renewables (DSD) has closed on $238 million in long-term financing from First Citizens Bank, Mitsubishi UFJ Financial Group (MUFG), and Nomura to support 233 megawatts (MW) of operational distributed generation solar and solar plus storage projects in 12 states and the District of Columbia.

A five-year mini-perm facility provides a longer-duration vehicle for five of DSD’s multi-asset portfolios. Proceeds were used to refinance warehouse debt with a structure tailored to the performance profile of the assets. Like an ABS, the structure leverages cash flow during the renewal period, but is still as flexible as a mini-perm loan based on debt coverage.

“This transaction marks an evolution in the market for distributed generation lending that acknowledges the captive nature of behind-the-meter assets that are linked to a stable, retail rate,” said Karin Logan, Chief Investment Officer of DSD. “We are thrilled to have optimized our capital structure and reduced our cost of capital all while maintaining the nimbleness and flexibility of a bank-led transaction.  This is truly a testament to DSD’s track record as one of the largest and most experienced operators for distributed generation and the continued strength of our lending relationships.”

The portfolios include 188 projects in operation across California, Connecticut, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Ohio, Pennsylvania, Virginia, and Washington, D.C. They feature a mix of ground-mount, rooftop, and canopy systems, with approximately 127 MW designated as community solar and three that incorporate battery storage to enhance grid resilience.

“DSD has built a diversified platform with operating assets that stand up to institutional scrutiny, and this financing reflects that,” said Mike Lorusso, Head of Energy Finance at First Citizens Bank. “Our role is to structure capital that aligns with performance, and this facility gives DSD the flexibility to unlock growth without constraining its balance sheet.”

“With a solid foundation of high-quality assets, DSD has built a platform that meets the highest standards. This facility is designed to empower their next phase of growth, offering strategic capital while maintaining balance sheet flexibility,” said Louise Pesce, Head of North American Power at MUFG.

“Nomura is excited to use our extensive structuring and financing experience to create a robust bespoke solution for DSD Renewables,” said Vinod Mukani Global Head of Nomura Infrastructure and Power Business. “DSD Renewables has developed a distributed generation platform with ambitious growth plans for the coming years, and Nomura is thrilled to support this and provide risk-adjusted returns for all stakeholders.”

The transaction marks the latest in a series of financing milestones for DSD as it continues to streamline access to capital across the project lifecycle to accelerate development, secure equipment, and pursue ongoing development activities.