Lightsource bp Secures $376 Million Financing for Solar Projects in the US

Lightsource bp, a solar project developer, secured $476 million for a planned 596 MW portfolio of solar projects in three U.S. states – Indiana, Alabama, and Colorado.

The financing consists of $376 million for the 293 MW Sun Mountain project in Pueblo, Colorado; the 173 MW Bellflower project in Henry and Rush counties, Indiana; and $100 million for the 130 MW Black Bear project in Montgomery County, Alabama.

Bank of America has provided the tax equity investment for Sun Mountain and Bellflower. Debt funding for the projects was provided by ING Capital, Sumitomo Mitsui Banking Corp., HSBC Bank USA. NatWest acted as the mandated lead for funding arrangers.

Both the projects are under construction and will reach commercial operation expected by late 2022.

The financing for the Black Bear project includes a tax equity investment from U.S. Bank and debt from Banco Santander and Sumitomo Mitsui Banking.

Lightsource BP will provide the balance of the equity requirements for the portfolio.

“This project financing transaction is a demonstration of the continued confidence that top-tier investors and power off-takers have in Lightsource bp and the quality of our solar assets. Our commitment to responsible solar development, such as the research we’re doing at Bellflower on co-locating pollinator habitat with solar, further multiplies solar’s contribution to preserving our planet for future generations,” said Kevin Smith, CEO of the Americas, Lightsource bp.

Lightsource bp signed a power purchase agreement with Verizon Communications earlier this year. SOLV Energy has been awarded the project’s Engineering, Procurement, and Construction (EPC) contractor.

According to Mercom’s 9M solar funding and M&A report, in September 2021, Lightsource bp secured a $1.8 billion revolving credit facility and trade finance facility to develop 25 GW of solar by 2025. The funding was led by ten global financial institutions – BNP, SocGen, Santander, Natwest, Lloyds, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, Canadian Imperial Bank of Commerce, Toronto Dominion, and Wells Fargo.