Leeward Renewable Energy Closes Financing for Horizon Solar Project
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MUFG leads approximately $75 million in Green Loan construction financing; Wells Fargo provides tax equity commitment of approximately $105 million for 200 MWac solar project in Frio County, Texas
Leeward Renewable Energy announced it has closed approximately $75 million in construction to term financing from MUFG Bank Ltd. and an approximately $105 million tax equity commitment from Wells Fargo for its Horizon solar facility located in Frio County, Texas.
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). The debt was issued under the Green Loan Principles, which aim to facilitate and support environmentally sustainable economic activity.
The financing for the Horizon solar facility is an extension of LRE’s previously announced financing for its Big Plain and Oak Trail solar projects. It further expands the Company’s generation of renewable energy capacity and marks another significant milestone in a growing portfolio of solar facilities. This will be LRE’s fifth solar project in the country and the second solar project in Texas, after Barilla Solar in Reeves County.
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“We are pleased to close financing on our Horizon project, and we appreciate the continued confidence from our financial institutions as we grow our solar portfolio,” said Chris Loehr, Senior Vice President of Finance. “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. We highly value our financial partners’ continued trust and support, particularly under terms that help advance and enhance LRE’s environmental and social initiatives.”
“We are honored to play a role in helping Leeward Renewable Energy expand its portfolio of renewable energy facilities in the Southwest, “said Beth Waters, Managing Director of Project Finance at MUFG. “This project is another important step toward making solar power ever more affordable and accessible, thereby facilitating the much-needed transition to renewable energy sources.”
Samantha Buechner, Director for Wells Fargo Renewable Energy & Environmental Finance, shared, “We’re pleased to provide tax equity financing for the Horizon Solar facility as Leeward continues to expand its solar portfolio. Wells Fargo has committed to deploy $500 billion in sustainable financing by 2030 to support the transition to a secure, resilient, and sustainable future, and projects such as Horizon align with those same goals.”
The Horizon solar facility is currently under construction. Once completed, it will generate enough electricity to power over 42,000 US homes annually, providing 200 megawatts of renewable energy to Verizon Communications under a long-term power purchase agreement. The project is expected to reach commercial operation later in 2023.
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