Accelerating Infrastructure Transformation on College Campuses Across the United States

Across the United States, college students gather in lecture halls to study and research how we can collectively innovate for a more sustainable future. Zoom out, and you will see that the campuses themselves are sprawling hubs of energy consumption, relying on substantial power generation to keep the lights on, the buildings running, and the knowledge flowing.

Universities are notable contributors to greenhouse gas emissions – in fact, Reuters reported that a study by the U.S. Energy Information Administration (EIA) found that power plants at just 93 of the 5,300 universities in the U.S. emitted 5.8 million tons of greenhouse gases in 2020 - equivalent to 1.1 million cars. 

The rise of public-private partnerships

In response, institutions of higher education across the country are on a mission to increase energy efficiency, reduce carbon footprints, and make their utility infrastructures more reliable through alternative forms of energy and innovative system solutions. Many are turning to public-private partnerships (P3s) to address infrastructure in ways that advance sustainability and system reliability that deliver operational efficiencies, flexibilities and cost benefits. 

P3s have gained notable momentum in recent years. Researchers estimate a 50% year-over-year increase in the value of the P3 transactions, with transaction volume expected to reach USD 5 billion by 2026. 

Supporting the University of Iowa

Societe Generale has long supported universities in this mission and has built a strong track record financing P3 transactions for college campuses nationwide. In 2020, the bank supported the University of Iowa Energy Collaborative LLC (“UIEC”) as Joint Lead Arranger and Hedge Provider for the financing of UIEC’s P3 with the University of Iowa. Majority-owned by Meridiam and ENGIE North America, UIEC is responsible for operating, maintaining, and improving the university’s utility system, with more than 2,100 acres of campus – including 12 colleges, world-class research parks, and major athletic facilities - such an investment is critical to driving the university’s reliability, decarbonization, and sustainability efforts. 

Most recently, Societe Generale acted as Financial Advisor, Rating Advisor, Sole Placement Agent, Green Loan Coordinator, Mandated Lead Arranger, and Hedge Provider in a refinancing effort for UIEC, with participation from BlackRock and Voya. The transaction comprised a combination of bank debt and private placement financing. The proceeds will be used to repay the existing revolving capex facility, which supported the university’s initial five years of capital investment, and to support continued investments in campus utility system improvements over the next 5 years. 

Leveraging recognized expertise to deliver a tailored financing solution

Notably, by identifying eligible expenses, Societe Generale’s sustainability team was able to structure a green loan tranche within the capex facility – supporting the University’s decarbonization efforts and zero-coal initiative.  As a result of prior capital improvements, the utility system became coal-free- capable in 2024. 

The deal underscores Societe Generale’s commitment to advancing university infrastructure reliability and sustainability, having previously led similar P3 financings for Eastern Michigan University and Georgetown University.

“Universities play a critical role in the ongoing energy transition – not just through advancing research and technological innovation – but through deploying ambitious strategies to enhance energy efficiency, long-term sustainability and reliability on their own campuses,” said Valentine Salletaz, Head of Infrastructure Finance and Advisory, Societe Generale Americas. “Our work with the UIEC in support of the University of Iowa demonstrates our full range of capabilities in executing complex, multi-layered infrastructure financings and marks an important milestone in furthering our leadership in the energy transition and infrastructure partnerships worldwide.”