Arevon Energy, a solar and storage project developer, secured $352 million in financing for the construction and development of 228 MW of the Posey Solar Project in Posey County, Indiana. The project is expected to be operational in Q1 2025 and will generate enough clean electricity to power the equivalent of more than 25,000 homes annually.
The financing package includes a $317 million construction loan and a $35 million letter of credit facility. Canadian Imperial Bank of Commerce (CIBC) served as the Coordinating Lead Arranger, Green Loan Coordinator, Bookrunner, and Administrative Agent. In addition, the Commonwealth Bank of Australia served as the Coordinating Lead Arranger, Green Loan Coordinator, and Letter of Credit Issuer. Banco Bilbao Vizcaya Argentaria (BBVA), Bayerische Landesbank (BLB), Lloyds Bank, and PNC Bank served as Joint Lead Arrangers. The Bank of New York Mellon served as Collateral and Depositary Agent.
Bechtel is the project engineering, procurement, and construction contractor. Once completed, Southern Indiana Gas and Electric Company will acquire the project from the developer through a build-transfer agreement.
Arevon Energy, headquartered in Scottsdale, Arizona, and New York City, builds, owns, finances, and operates clean energy projects. Recently, the developer secured a $1.1 billion tax equity commitment and debt financing, including a tax equity bridge loan, a construction-to-term loan, and letter of credit facilities for its Eland 2 Solar-plus-Storage project.
According to Mercom’s Q4 and Annual Global Solar Funding and M&A report, large-scale project funding deals announced in 2023 came to $44.5 billion in 229 deals, of which 196 were disclosed. In a YoY comparison, large-scale project funding increased 74.5% compared to the $9.8 billion raised in 52 deals in Q4 2022.
