Canadian Solar announced earlier this month the news that its subsidiary, Recurrent Energy, had secured financing for the 100 MW Mustang solar power project.
Canadian Solar is one of the world’s largest solar power companies, even in the face of recent slips in shipping numbers, while Recurrent Energy, a wholly-owned subsidiary of Canadian Solar, is one of North America’s largest solar project developers.
The two announced on Tuesday that Recurrent Energy had closed on a debt facility with Santander Bank, N.A. and a tax equity investment commitment with US Bancorp Community Development Corporation (USBCDC). The secured financing will go towards the development of the 100 MW Mustang solar power project, currently being constructed in Kings County, California.
The agreement calls for Santander Bank to provide $165 million in construction lending, a tax equity bridge loan, and a term loan option, while the USBCDC will make a renewable energy tax credit equity investment of $101 million into the project under a separate agreement. For its part, Recurrent Energy will maintain the managing member of the project, and plans to own and operate the project upon completion.
“This agreement with leading investors such as Santander and USBCDC demonstrates our ability to develop consistently bankable solar projects,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “Securing financing for the Mustang project is an important milestone as we work to execute on our pipeline of late stage projects.”
“By supporting renewable energy projects like the Mustang facility, we can help sustain the environment and stimulate the economy,” said Jorge Camina, Head of Project Finance at Santander Bank, N.A. “Financing Canadian Solar and Recurrent Energy in this milestone project demonstrates our commitment to supporting leading sponsors of renewable energy projects.”
“USBCDC is excited to partner with Canadian Solar and Recurrent on this investment, which will lead to economic development and job creation in Kings County, while providing additional renewable energy resources to California electric customers,” said Adam Altenhofen, vice president of U.S. Bancorp Community Development Corporation.
The Mustang solar power project will cover an area of approximately 1,000 acres in Kings County, and upon expected completion in the fourth quarter of 2016, the project will generate the equivalent electricity needed to power 28,000 homes.