Leeward Renewable Energy closes solar financing
Leeward Renewable Energy has closed an $180 million commitment from MUFG Bank and Wells Fargo for a 200MW Horizon Solar Facility located in Frio County, Texas.
The RE developer has received a $75 million green loan for construction financing and a $105 million tax equity commitment.
The debt was issued following the Green Loan principles, which aim to promote environmentally sustainable economic activities.
MUFG served as the green loan structuring agent, coordinating lead arranger and administrative agent for the construction-to-term financing, arranging financing commitments from eight financial institutions and Export Development Canada (EDC).
Horizon Solar will be LRE’s fifth solar project in the country and the second solar project in Texas, after Barilla Solar in Reeves County.
Once finished, the solar plant will supply 200MW of renewable energy to Verizon Communications under a long-term PPA, which will be enough to power around 42,000 American homes annually. The project is expected to reach commercial operations by the end of 2023.
Chris Loehr, senior vice president of finance, said: "This milestone follows the successful development of our recently announced Big Plain and Oak Trail solar projects, and further demonstrates our long-term commitment to excellence and ability to deliver on our pipeline of contracted projects."
Samantha Buechner, director for Wells Fargo Renewable Energy & Environmental Finance, said the company has committed to deploying $500 billion in sustainable financing by 2030 to support the transition to a sustainable future and projects.