Leeward Renewable Energy (LRE) has closed approximately $75 million in construction to term financing from MUFG Bank Ltd. and an approximately $105 million tax equity commitment from Wells Fargo for its Horizon solar facility located in Frio County, Texas.
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. The debt was issued under the green loan principles, which aim to facilitate and support environmentally sustainable economic activity.
The financing for the Horizon solar facility is an extension of LRE’s previously announced financing for its Big Plain and Oak Trail solar projects. This will be LRE’s fifth solar project in the country and the second solar project in Texas, after Barilla Solar in Reeves County.
“We’re pleased to provide tax equity financing for the Horizon Solar facility as Leeward continues to expand its solar portfolio,” says Samantha Buechner, director for Wells Fargo Renewable Energy and Environmental Finance. “Wells Fargo has committed to deploy $500 billion in sustainable financing by 2030 to support the transition to a secure, resilient, and sustainable future, and projects such as Horizon align with those same goals.”
The Horizon solar facility is currently under construction. Once completed, it will generate enough electricity to power over 42,000 U.S. homes annually, providing 200 MW of renewable energy to Verizon Communications under a long-term power purchase agreement. The project is expected to reach commercial operation later this year.