Doral Renewables, a utility-scale renewable energy project developer, closed a construction debt facility for its Great Bend solar project. The company secured $114 million in financing from the sole lender, HSBC, for the project, which consists of a $36 million construction-to-term loan facility, a $57 million tax equity bridge loan, and a $21 million letter of credit facility.
The Great Bend Solar project features a single-axis, ground-mounted PV system having a capacity of 48 MWac. This venture marks Doral’s inaugural investment in Ohio’s solar sector. The project will generate energy and renewable energy certificate revenue via a long-term Power Purchase Agreement (PPA) with one of the largest investor-owned utilities in the U.S. Doral expects that the facility will power approximately 9,000 homes once in operation.
Additionally, the Great Bend Solar project is expected to contribute in excess of $400,000 annually in new tax revenue for Meigs County.
“We are proud to support Doral Renewables with this financing and to have partnered with their world class team, furthering HSBC’s commitment to financing premier renewables projects,” said Paul Snow, Head of Renewables, Americas at HSBC. “This is our inaugural facility with Doral Renewables, complementing HSBC’s ambition to deliver a net zero global economy,” said James Gallagher, Head of International Banking USA at HSBC. “We look forward to enhancing our relationship with Doral in 2024 and beyond.”
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.
Greenvolt, a solar and wind project developer, recently signed a €36 million (~$39.34 million) project finance with UniCredit Bank Hungary for the construction, operation, and maintenance of a 57 MW solar project in Hungary. With an annual generation capacity of 87 GWh, is currently under construction, and with the aid of Project Finance, it is anticipated to achieve commercial operation by the end of the first half of 2024.
