Canadian Solar (NASDAQ: CSIQ) announced Nov. 3 that its wholly owned subsidiary, Recurrent Energy, closed on a debt facility with a club of banks and a tax equity investment commitment with U.S. Bancorp Community Development Corp. (USBCDC), securing financing for the 60-MW (ac) Barren Ridge solar project.
Recurrent Energy will be the managing member and plans to own and operate the project, currently under construction in California. 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 project. USBCDC, a division of U.S. Bank (NYSE: USB), will make a tax equity investment in the project, under a separate agreement.
“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,” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar. “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.”
“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,” said Adam Altenhofen, vice president of USBCDC.
“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 Thomas Emmons, Head of Project Finance at Rabobank in New York.
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. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under a long-term power purchase agreement to the Los Angeles Department of Water and Power.
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, real estate, and renewable energy project financing in 45 countries. In the Americas, Rabobank is a premier bank to the food and agriculture industry, as well as a leading financier of solar, wind, bioenergy, and energy infrastructure projects, providing in-depth knowledge and expertise as well as full arranging, underwriting and syndication capabilities. Since entering the American renewable energy arena in 2009, Rabobank has financed more than 6 GW of renewable energy projects.
With nearly $16 billion in managed assets as of Sept. 30, 2015, U.S. Bancorp Community Development Corp. provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs.
Recurrent Energy has more than 4 GW of solar projects in development in North America. Founded in 2001 in Canada, Canadian Solar is a leading manufacturer of solar photovoltaic modules and a provider of solar energy solutions. In the past 14 years, Canadian Solar has successfully deployed over 11 GW of premium quality modules in over 70 countries around the world.