Introducing an industry-leading product that will allow both first-time and experienced investors to tap into the renewable energy tax credit market, US Bancorp (NYSE:USB) and ORIX USA Corp. recently announced the launch of US Bancorp’s first renewable energy syndication.
“This is a new phase of business development for US Bancorp,” said Zack Boyers, chairman and CEO of US Bancorp Community Development Corporation. “Entering into our first renewable energy syndication agreement allows us to expand SolarCity’s ability to install more energy-saving solar arrays on homes and businesses across the nation that will, as a result, produce more jobs and assist in the country’s economic recovery.
SolarCity Wins With Renewable Energy Syndication
The new SolarCity solar projects are expected to produce more than 350 construction and installation jobs. They will also generate $76 million in economic impact from salaries, equipment purchases, construction materials, and secondary spending by workers on local services and on solar industry vendor supplies and services. In addition to all these benefits, they are also projected to produce enough clean, renewable energy in their first year of operation to be equivalent to removing 4,250 cars from the roads each year. The new SolarCity solar power installations are slated for Arizona, California, Colorado, Connecticut, Hawaii, Massachusetts, Maryland, New Jersey, and New York, with more states to come.
SolarCity has grown to become America’s largest solar energy provider, offering a cleaner, more affordable renewable energy alternative to burning fossil fuels, such as natural gas, coal, or oil. Revolutionizing utility choices across the nation, SolarCity makes the transition simple for its customers and guarantees the electricity production of its solar energy systems. Offering clean, renewable energy to homeowners, businesses, schools, nonprofits, and government organizations, SolarCity states that its systems are installed to the highest engineering standards.
A Gain on Multiple Fronts for US Bancorp
The renewable energy syndication is a gain on multiple fronts for US Bancorp. Boosting capital in the solar market, the agreement significantly boosts renewable energy usage. Boyers noted that it also diversifies US Bancorp’s products and services, and its ability to serve the needs of a growing market.
With $403 billion in assets as of Dec. 31, 2014, Minneapolis-based US Bancorp is the parent company of US Bank National Association, the fifth largest commercial bank in the United States. Operating 3,176 banking offices in 25 states, and 5,022 ATMs, US Bancorp provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust, and payment services products to consumers, businesses, and institutions.
US Bancorp Community Development Corporation (USBCDC), a subsidiary of US Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. With nearly $15.8 billion in managed assets as of Dec. 31, 2014, USBCDC’s commitments provide capital investment to areas that need it the most. Notably, USBCDC has contributed to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities.
ORIX Enters the Renewable Energy Tax Credit Financing Market
Andrew Garvey, managing director and head of ORIX Municipal Finance, said, “This new renewable energy syndication agreement deal marks ORIX’s entry into the renewable-energy tax credit financing market. We welcome the opportunity to help consumers and businesses reduce greenhouse gas emissions by becoming solar energy users.”
With around $7 billion in assets and managing an additional $30 billion, Dallas-based ORIX USA is a financial services firm known for providing innovative capital solutions for clients wanting to propel their business to the next level. A subsidiary of ORIX USA, ORIX Municipal Finance makes investments of approximately $10 million to $50 million in public, semi-public, and private entities. The company’s investment portfolio includes transactions for a wide range of industries, including healthcare, housing, education, energy, and transportation.
“ORIX is a unique platform,” noted Andrew Garvey, “and this transaction shows how we can make our capital available in innovative ways to achieve the financing needs of our clients.”
ORIX USA and its family of companies have more than 1,400 employees with principal offices in Atlanta, Chicago, Los Angeles, Minneapolis, New York, San Francisco, Seattle, Hartford, Washington DC, London, Paris, and Frankfurt. ORIX USA is a wholly owned subsidiary of ORIX Corporation, a Tokyo-based, publicly owned international financial services company with operations in 36 countries and regions worldwide.