Recurrent Energy secures $115 million in construction funding for 60 MW solar project
Written By: Stratton Report
November 3, 2015
On November 3, Canadian Solar Inc. announced that its subsidiary, Recurrent Energy, secured financing for the 60 megawatt Barren Ridge solar power project. The debt facility was provided by a club of banks and a tax equity investment commitment with U.S. Bancorp Community Development Corporation (USBCDC).
The lender club, led by Rabobank and including Santander Bank, NordLB, Key Bank, and CIT, will provide $115 million of construction debt, a tax equity bridge loan, and a term loan option for the Barren Ridge solar project. USBCDC, a division of U.S. Bank (NYSE: USB), will make a tax equity investment in the project, under a separate agreement.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar noted: “Investment in clean energy projects from industry leading investors and financiers such as USBCDC and the lender club demonstrates the success of the solar industry moving into our mainstream energy mix. Securing financing for the Barren Ridge solar project is an important milestone as we work to bring our pipeline of late stage projects to operation.”
Adam Altenhofen, vice president of USBCDC, remarked:
“USBCDC is proud to partner with Recurrent Energy on this project that will create jobs in Kern County, while reducing carbon emissions and producing a cleaner environment for all Californians.”
Thomas Emmons, Head of Project Finance at Rabobank in New York commented: “We are pleased to support Canadian Solar and Recurrent Energy by financing the construction of the Barren Ridge project, which will provide competitively priced renewable energy to California,” said.
The Barren Ridge solar project, located in Kern County, is expected to reach commercial operation in the third quarter of 2016. The project began construction earlier this year with Swinerton Renewable Energy serving as the provider of engineering, procurement, and construction services. Recurrent Energy will be the managing member and plans to own and operate the project, currently under construction in California.