Leeward Renewable Energy, a renewable energy project developer, closed $280 million in financing for its 200 MW Horizon solar project in Frio County, Texas.
The financing consists of $75 million in construction-to-term from MUFG Bank and a $105 million tax equity commitment from Wells Fargo.
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 Horizon solar project is currently under construction and once completed, it is expected to generate enough electricity to power over 42,000 U.S. homes annually. The project is expected to reach commercial operation later in 2023.
“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.”
According to Mercom Annual and Q4 2022 Solar Funding and M&A report, large-scale project funding in 2022 came to $32.1 billion in 179 project funding deals, compared to $18.7 billion in 185 projects in 2021. In November 2022, Leeward Renewable Energy closed $420 million in construction-to-term financing from MUFG Bank and a $195 million tax equity commitment from Wells Fargo for its Big Plain Solar Facility in Ohio and its Oak Trail Solar Facility in North Carolina.