Sunraycer Renewables, a developer, owner, and operator of clean energy power sites, secured a $475 million project financing facility from MUFG Bank, Nomura Securities International, and Norddeutsche Landesbank Girzonentrale for the development and construction of Gaia and Midpoint solar and battery energy storage projects in Texas.
The two projects include the 143 MWac Gaia solar project with a 75 MWac battery storage system in Navarro County and the 97.5 MWac Midpoint solar project coupled with a 50 MWac battery energy storage system in Hill County.
The financing facility comprises a construction-to-term loan, a tax credit bridge loan, and a letter of credit facility. This financing facility has raised the company’s total capital to $675 million over the last six months.
Construction on the Midpoint project began late last year, and commercial operations on both projects are expected later this year.
The clean electricity produced by the projects will support the increasing energy demand from manufacturing and data centers in Texas, particularly within the ERCOT grid.
Orrick, Herrington & Sutcliffe served as Sunraycer’s legal counsel, while Milbank and Squire Patton Boggs advised lenders on the transaction.
“MUFG is thrilled to have led Sunraycer’s inaugural project financing. The Midpoint and Gaia assets will help meet growing demand in ERCOT and have material positive impacts on Texas ratepayers and the environment. We are very impressed by the Sunraycer team, and are excited to support their future growth,” said Louise Pesce, Managing Director at MUFG.
According to Mercom’s Annual and Q4 2024 Solar Funding and M&A Report, large-scale project funding in 2024 increased 21% year-over-year.
Earlier this week, Greenalia, a renewable energy project developer, secured a $295 million construction-to-term loan and a $93 million letter of credit facility from Mitsubishi UFJ Financial Group (MUFG) and Nomura Securities International for the 430 MWdc/331.6 MWac Misae II solar project in Texas.
