Ashtrom Renewable Energy Secures Financing for 400 MW Solar Project

Ashtrom Renewable Energy, an independent power producer and subsidiary of the Israel-based Ashtrom Group, has secured $270 million for its 400 MW Tierra Bonita Solar Project in Texas. The green financing was secured from a group of five banks, including BHI, the U.S operation of Bank Hapoalim Group, Bayerische Landesbank, ING Capital, Rabobank, and Société Générale.

The project is currently under construction and is expected to reach commercial operation by Q4 2024.

The solar project is being developed by Ashtrom Renewable Energy and its local development partner, OnPeak Power, a privately held renewable energy company based in Austin, Texas.

The total investment in the Tierra Bonita project is estimated at ~$435 million.

Morgan Lewis and Marathon Capital advised Ashtrom Renewable Energy and Allen & Overy advised Stonehenge Capital.

In addition, Ashtrom Renewable Energy signed a Tax Credit Transfer Agreement (TCTA) to sell the production tax credit (PTC) to be produced by the project over ten years to a highly rated (Aa3 Moody’s) U.S. institutional entity.

The total value of the PTC is estimated at ~$300 million. The Tierra Bonita project is expected to be one of the first solar projects in the U.S. to complete a Tax Credit Transfer Agreement for solar PTCs under the new Inflation Reduction Act (IRA) and complete financing under a project finance structure.

“The financial closing of the Tierra Bonita project marks a significant milestone for Ashtrom Renewable Energy, demonstrating confidence in our strong capabilities to execute the development, planning, financing, and construction of our first large-scale solar project in the U.S., with a total investment of approximately $435 million,” said Yitsik Mermelstein, CEO at Ashtrom Renewable Energy.

According to Mercom’s 1H and Q2 2023 Solar Funding and M&A Report, in the first half (1H) of 2023, 116 solar project acquisitions totaling 25.5 GW were announced compared to 148 project acquisitions totaling 37.8 GW in 1H 2022.