New York Governor Andrew M. Cuomo announced that Alfred Griffin, a banking veteran from Citigroup would head the New York Green Bank, a $1 billion initiative that directs private sector financing toward clean energy projects.
Specifically, Griffin worked for Citigroup Global Markets Inc. where he specialized in structured finance with roles in corporate and investment banking, capital markets and risk management. Mr. Griffin has also worked alternative energy and new product development to finance renewable energy generation and energy efficiency.
The Green Bank plans to use money that has already been collected from utility bills and set aside for energy-efficiency programs to get the project off the ground, according to a report in Bloomberg. The Governor has already petitioned the New York State Public Service Commission to release $165 million.
The New York State Energy Research and Development Authority (NYSERDA) will run the bank. It will package loans for resale into the secondary market, which will allow investments from pension funds and other institutions. Guarantees to private lenders will guarantee to absorb a portion of losses incurred on specific loans.
The bank’s funding will grow as loans are repaid or sold, without additional funds from utility customers. In 10 years, Governor Cuomo expects the bank to have $8 billion.