Investment Banking and Underwriting Services

The Alaska Energy Authority is issuing a Request for Proposals to procure investment banking and underwriting services for the financing of the Bradley Lake Hydroelectric Project Expansion, a major renewable energy initiative located near Homer that will increase output by up to 50% through glacial runoff diversion and infrastructure modifications. The Authority seeks to select qualified investment banking firms to provide underwriting services in connection with the issuance of tax-exempt revenue bonds and to evaluate alternative financing strategies, including short-term bridge financing mechanisms. The total project cost is $420.7 million with an anticipated financing need of $400 million in tax-exempt bonds, with scheduled draws extending from December 2026 through June 2032. Proposers must submit comprehensive 12-page proposals by 2:00 PM Alaska Time on May 19, 2026, including cover letters, firm qualifications, personnel assignments with identified lead bankers, financing structure recommendations, credit analysis with rating agency approach, marketing plans with interest rate outlooks, underwriter compensation details, and discussion of co-manager advantages and optimal team composition. The Authority will accept questions regarding the RFP through May 4, 2026, with responses provided by May 8, 2026. Selected firms may be interviewed the week of May 25, 2026, with underwriter appointment expected by May 29, 2026 and initial transaction meetings scheduled for the week of June 1, 2026. Evaluation criteria include proposals' treatment of financing structure, financial modeling, total interest cost calculations, alternative structures including deferred payment options until project operation in 2031, compensation details, and overall qualifications and team composition.

The RFP does not indicate specific set-aside designations or restrictions limiting responses to particular types of organizations or disadvantaged enterprises. Proposers are prohibited from directly contacting Authority staff, management, or rating agencies except through the designated financial advisor, PFM Financial Advisors LLC in Seattle, ensuring controlled communication throughout the procurement process. The Authority reserves the option to establish a pool of multiple underwriters from which it can draw upon based on their unique financing expertise rather than selecting a single firm, allowing flexibility for managing multiple bond draws over the extended project timeline. No incumbent vendors or current contractors are identified in the procurement documentation. The anticipated award value ranges from $400 million in tax-exempt bond issuance, with the Authority also exploring commercial bank financing options such as lines of credit, though specific underwriter compensation structures will be evaluated as a component of proposal scoring. Proposals may be submitted electronically via email or Dropbox, by mail, or in person.