KeyBank has finished a top three renewable energy lender for seven years

KeyBank is seriously invested in sustainability.

From 2018 through 2022, KeyBanc Capital Markets (KBCM) ranked as the nations’ number one renewable energy lender in terms of both number and dollar volume of deals executed. For deals executed in 2022, KBCM ranked number two in the number and dollar volume of deals executed. This was the seventh consecutive year that KBCM have finished in the top three, according to Dealogic 2022 rankings.

Since the inception of  KBCM’s alternative energy team in 2007, it has committed more than $18.5 billion to renewable energy – which has helped facilitate over $60 billion of financings in the bank debt market for renewables.

The practice continues to grow.

By year-end 2022, KBCM had $8.4 billion committed to renewable energy projects, including $1 billion to battery storage and solar + storage transactions. Projects financed include wind, distributed solar, residential solar, utility scale solar, and increasingly battery storage.

With 50 people, Key’s renewable energy team is the largest in the industry, with employees in Cleveland, New York City and San Francisco.

The forward-thinking bank was a leader from the time of its entry into renewables.

“Renewables in 2007 were considered a niche industry, but we could see that the sector was drawing the attention of many of our utility and private equity clients. The sector seemed to be on the verge of significant growth.  We were right,’” says Andrew Redinger, managing director of KeyBanc Capital Markets energy practice and lead of the Utilities, Power and Renewables, and Oil & Gas teams.

In the wake of the Enron collapse, “a lot of banks momentarily exited the power sector,” says Redinger. “There was a shortage of bank credit and a huge hole to fill, and we filled it.  Key’s utility business went from 20 miles an hour to 100. We built instantaneous relationships. And an extraordinarily strong utility practice, which really laid the foundation for our renewable practice.

“In 2007, Key Debt Capital Markets Team Leader Paul Pace and I looked around the marketplace. We could see that renewables were coming in like a freight train. And we could see that was the next big wave. When we looked at the playing field, there weren't any other U.S. based banks in the business.”

A thriving practice was born.

“We had first mover advantage, as well as the industry expertise that understood renewable developers’ capital needs. KeyBank had open-minded management, especially on the credit side. We also knew that our platform was uniquely suited to provide the products and services required for a capital-intensive industry like renewables. KBCM’s access to the capital markets, advisory services and our own balance sheet has a lot to do with our strategy," says Redinger.

Key’s size made them ideally suited to the growing field.

“Our size is an advantage. We’re big enough to matter, but we're small enough where we can move quickly when someone has a good idea,” says Redinger.  

“It was the perfect industry for our strategy, which is very relationship driven. Given that there weren't many U.S. based banks, we found success immediately. There's not another U.S. based bank that has been in the renewable space like we have been for the last 15 years.”

While many projects they have financed have been outside of Ohio, Redinger expects Key to be more involved regionally as renewable energy projects increase due to the proposed community solar legislation (HB197).

“It's great that Ohio is turning it on. Hopefully, we can help greenify Ohio. [The legislation] will provide additional incentives for developers to focus on Ohio, because developers go where they can make the most money."

Across the country, Redinger says more businesses are seeing green in going green – and Key is ready to help.

“There's clearly incentive from the legislatures, shareholders, owners and investors to be green. People are starting to consciously make decisions about where they spend their dollars based on ESG considerations. There's a strong movement, and its getting stronger every day”

Beyond good business, renewable energy is good citizenship – and key to Key’s commitment to climate stewardship. CEO Chris Gorman expanded on this in the bank’s 2022 ESG report, saying:

“We are taking measurable actions to create a more sustainable economy through products and services that support green buildings, energy efficiency, and renewable energy – while helping our clients to do the same. We are proud to be the number two renewable energy financier in North America."