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Macquarie Capital is set to back up to $300 million in renewable energy projects for US hospitals, a move that comes as part of a US Government initiative. The initiative aims at enhancing energy efficiency and reducing emissions in the healthcare sector, with a particular focus on safety-net providers in economically disadvantaged communities. This effort is led by the White House Office of Clean Energy Innovation and Implementation, alongside the US Department of Health and Human Services.
The government program utilizes grants and tax credits from the US Inflation Reduction Act (IRA) to fund renewable energy developments. This has significantly accelerated Macquarie Capital’s primary investment strategy in sectors such as renewable power, battery storage, EV charging, energy services, and renewable (RNG).
John Pickhaver, Head of Infrastructure & Energy Capital (IEC) at Macquarie Capital, has expressed confidence in the potential of projects that can lower energy costs, reduce emissions, increase resiliency, and offer attractive returns to investors. The IEC team at Macquarie Capital supports various energy projects, including its investment in FESCO Energy which is delivering over $50 million in healthcare projects. One of these includes a $21 million project at Meritus Medical Center in Maryland. FESCO also has a near-term pipeline of more than $200 million of similar projects across multiple industry sectors.
Recently, Macquarie participated in a roundtable discussion at the White House focusing on strategies for financial institutions, philanthropic organizations, and industrial enterprises to assist healthcare facilities achieve energy resilience. This includes the implementation of on-site solar panels, microgrids, battery storage, backup generation with cleaner fuels, and EV charging for vehicle fleets.
Macquarie’s Aerogy platform develops RNG projects from organic feedstocks. Additionally, Macquarie Asset Management (MAM) and other businesses of Macquarie Group (OTC:) leverage the IRA to support renewable energy and related infrastructure. MAM Green Investments invests in companies like Corio Generation and Atlas (NYSE:) Agro, a green nitrogen fertilizer company. It has also formed a joint venture with Siemens, Calibrant Energy, to build distributed energy projects.
Commodities and Global Markets (CGM), another business of Macquarie Group, is focused on providing decarbonization solutions for diverse clients. With risk management and capital solutions, CGM supports carbon-intensive enterprises to decarbonize while continuing to deliver vital services. As of March 2023, Macquarie Group had assets under management of $581.9 billion.
InvestingPro Insights
InvestingPro real-time data reveals that Macquarie Capital, coded as MQBKY, holds a substantial market cap of 38.13B USD. The company’s P/E Ratio is 11.83, demonstrating a reasonable valuation in the market. Over the last twelve months of 2023, the company showed a revenue growth of 9.99%, indicating a steady increase in its financial performance.
In terms of InvestingPro Tips, it’s worth noting that MQBKY has consistently increased earnings per share, a positive sign for investors. The company has also maintained dividend payments for 16 consecutive years, demonstrating a commitment to shareholder returns. Yet, caution is advised as the company is trading at a high P/E ratio relative to near-term earnings growth, and revenue growth has been slowing down recently.
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