en.Wedoany.com Reported - Canada's H2O Innovation Inc. has completed a $200 million project-level debt financing specifically dedicated to supporting the acquisition, construction, and ongoing development of water infrastructure assets across the United States.
This financing structure qualifies as a blue loan under the International Finance Corporation (IFC) Blue Finance Guidelines, a designation granted to debt instruments used for the sustainable use and protection of water and marine resources. Scotiabank served as the sole bookrunner, co-lead arranger, and co-lead blue loan structuring agent for the financing. National Bank of Canada (NBC) provided support as co-lead arranger, administrative agent, letter of credit issuer, and co-lead blue loan structuring agent. Export Development Canada (EDC) also participated in the loan syndication.
The funds will be used for H2O Innovation's water infrastructure project pipeline, known as WaterHubs, specifically including operating asset acquisitions, greenfield facility development, and expansions of existing sites. WaterHub is a water infrastructure project deployed for municipalities, utilities, hospitals, universities, airports, manufacturers, and other commercial and industrial clients. These projects are delivered with zero upfront capital costs and are operated by H2O Innovation under multi-year service agreements. The WaterHub platform encompasses advanced water treatment, wastewater treatment, and water recovery and reuse. Through this model, H2O Innovation can acquire existing water infrastructure assets and invest in improvements, unlocking capital, enhancing performance, and reducing risk for clients. The company can also design and develop new water and wastewater treatment and reuse facilities for clients, providing end-to-end solutions.
This financing follows the recently announced WaterHub project at the University of Texas at Austin, enriching the company's portfolio of operational and under-construction projects in the United States.
Frédéric Dugré, President and CEO of H2O Innovation, stated that this credit facility is a milestone in the company's growth strategy, providing scaled dedicated capital for acquiring and building the next generation of WaterHub assets, while the blue loan designation reflects the fundamental purpose of this infrastructure for the long-term sustainable management of water resources. Casey Allen, Vice President and Managing Director of Water Infrastructure Development at the company, added that with the support of this project financing, they can move faster across the entire WaterHub pipeline, from M&A to greenfield projects, thereby helping clients secure long-term water supplies, upgrade infrastructure without deploying their own capital, and achieve sustainability goals.
Marc Chouchani, Managing Director and Head of Infrastructure and Project Finance at Scotiabank, said the bank is proud to support H2O Innovation, and this financing reflects the bank's focus on supporting leading sustainable water management and critical infrastructure development companies in North America.
Norton Rose Fulbright US LLP served as legal counsel to H2O Innovation, and White & Case LLP served as legal counsel to the lenders.
H2O Innovation is a water solutions company that creates value through synergistic pillars including water technology and services, specialty products, operations and maintenance, and water infrastructure development, providing equipment, chemicals, consumables, and long-term services covering the full lifecycle of water, wastewater, and water reuse.
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