Power Inc. Plug (NASDAQ:PLUG) stock is trading higher today. The hydrogen solutions provider launched an equipment leasing financing platform.
The company aims to raise over $150 million in the short to medium term through a combination of debt leverage and customer financing solutions.
The platform is designed to unlock capital from Plug’s equipment assets and offer financing options to drive sales growth.
In its initial move, Plug finalized three sale and leaseback agreements totaling approximately US$44 million with GTL Leasing, a portfolio company of Antin Infrastructure Partners.
“This allows us to raise capital immediately and opens a path to additional capital in the near term, supports our growth in the green hydrogen sector and aligns with Plug’s financial and operational objectives,” said Plug CFO Paul Middleton.
These agreements cover hydrogen transportation and storage equipment, including trailers and cryogenic storage tanks. The transactions allow Plug to retain access to essential hydrogen equipment while simultaneously improving its financial flexibility.
The capital raised will be reinvested in core operations, supporting the company’s long-term growth and expansion plans.
The platform is designed to improve Plug’s operational efficiency and resource management, while offering partners like GTL an attractive investment opportunity to grow their leased asset portfolios.
For GTL and other participants, this partnership offers long-term revenue potential, portfolio diversification and deeper participation in the green hydrogen economy, positioning them for sustained growth and expansion.
Nathalie Kosciusko-Morizet and Stephan Feilhauer, Senior Partner and Partner, respectively, at Antin Infrastructure Partners, said: “These transactions not only provide GTL with a strong portfolio of cryogenic and gaseous storage tanks and trailers, but also support some of the largest distribution centers in the U.S..”
On Wednesday, Plug Power secured a 25 megawatt (MW) order for its proton exchange membrane (PEM) electrolyzer systems from a major oil company joint venture, Castellón Green Hydrogen SL.
Investors can access the shares through Global X Hydrogen ETF (NASDAQ:HYDR) and Defiance Next Gen H2 ETF Series Solutions (NYSE:HDRO).
Read also: Plug Power misses Q2 revenue, analysts focus on electrolyzer deployments: ‘The bar was low’
Price actionPLUG shares were up 5.95% at $2,225 at last check Thursday.
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This article Plug Power Fuels Sales Boom With $150M+ Equipment Leasing Strategy – What’s The Benefit? originally appeared on Benzinga.com
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