H2O Innovation Inc. has closed a US$200 million platform-level project debt facility to finance the acquisition, construction, and continued development of water infrastructure assets across the United States.
The facility has been structured to qualify as a Blue Loan under the International Finance Corporation's (IFC) Blue Finance Guidelines, a designation reserved for debt instruments financing the sustainable use and protection of water and ocean resources.
The capital is earmarked for H2O Innovation's pipeline of water infrastructure projects, branded as WaterHubs. The funding will cover the acquisition of operating assets, the development of greenfield facilities, and the continued expansion of existing sites.
WaterHubs are water infrastructure projects deployed for municipalities, utilities, hospitals, universities, airports, manufacturers, and other commercial and industrial customers. The projects are delivered with no upfront capital cost to the customer and are operated by H2O Innovation under multi-year service agreements. The platform spans advanced water treatment, wastewater treatment, and water reclamation and reuse.
The new debt facility follows the recently announced WaterHub project at the University of Texas at Austin, which adds to the company's portfolio of operating and under-construction projects across the United States
Under the model, H2O Innovation can acquire existing water infrastructure assets and invest in improvements, or design and develop new water and wastewater treatment and reuse facilities for customers as an end-to-end solution provider.
The new debt facility follows the recently announced WaterHub project at the University of Texas at Austin, which adds to the company's portfolio of operating and under-construction projects across the United States.
"This credit facility is a milestone in our growth strategy," said Frédéric Dugré, President and Chief Executive Officer of H2O Innovation. "It gives us scaled, dedicated capital to acquire and build the next generation of WaterHub assets — and the Blue Loan qualification reflects the underlying purpose of this infrastructure: the long-term, sustainable management of water as a resource."
Casey Allen, Vice President and Managing Director, Water Infrastructure Development at H2O Innovation, said the financing would accelerate the company's project pipeline. "With the support of this project financing, we can move faster across the entire WaterHub pipeline, from mergers and acquisitions (M&A) to new-build projects," he said. "This capital positions us to deliver our full turnkey solution at scale so our customers can secure long-term water supply, upgrade their infrastructure without committing their own capex, and achieve their sustainability objectives."
Marc Chouchani, Managing Director and Head of Infrastructure and Project Finance at Scotiabank, said the bank was "proud to support H2O Innovation with this groundbreaking credit solution," adding that the facility "exemplifies our focus on supporting companies leading the way in sustainable water management and the development of critical infrastructure across North America."
