Recurrent Energy has secured financing for the 100 MW Mustang solar power project, under construction in California.
The financing is in the form of a debt facility with Santander Bank NA and a tax equity investment commitment with U.S. Bancorp Community Development Corp. (USBCDC).
Under the agreements, Santander Bank will provide $165 million in construction lending, a tax equity bridge loan and a term loan option for the Mustang solar project. USBCDC is making a tax equity investment in the project under a separate agreement.
The Mustang project, covering an area of approximately 1,000 acres in Kings County, is expected to reach commercial operation in the fourth quarter of 2016. Blattner Energy is providing engineering, procurement and construction services. Recurrent Energy, a subsidiary of Canadian Solar Inc., will be the project's managing member and plans to own and operate the facility. The electricity and associated renewable energy credits generated by the facility will be sold under long-term power purchase agreements.
‘Securing financing for the Mustang project is an important milestone as we work to execute on our pipeline of late-stage projects,’ says Shawn Qu, chairman and CEO of Canadian Solar.