Canadian Solar Inc. has secured financing for its 92 MW IS-42 solar power project near Fayetteville, N.C. The financing is in the form of a debt facility with Prudential Capital Group and a tax equity investment commitment from U.S. Bancorp Community Development Corp. (USBCDC).
Prudential Capital Group will provide a $97 million debt facility, including a tax equity bridge loan, term loan, and revolving loan to the project. USBCDC, a division of U.S. Bank, will make a tax equity investment in the project under a separate agreement.
The 92 MW project, covering an area of approximately 450 acres in the Bladen and Cumberland counties of North Carolina, is currently under construction and is expected to reach commercial operation in the third quarter of 2017. The project has a long-term power purchase agreement with Duke Energy Progress, and once operational, the project is expected to generate enough solar energy to power approximately 11,750 homes in the state.
“This agreement with leading financial institutions such as Prudential Capital Group and U.S. Bank demonstrates the quality of the solar projects which Canadian Solar is developing in the U.S.,” says Dr. Shawn Qu, chairman and CEO of Canadian Solar. “We are glad to further strengthen our partnership with Prudential Capital Group and USBCDC with this large project and support the growth of the solar industry in the country.”
“We are excited to support Canadian Solar in their efforts to construct and operate solar projects in the United States,” comments Wendy Carlson, managing director of Prudential Capital Group’s Energy Finance Group: Power. “We are pleased to continue building our relationship with Canadian Solar and USBCDC.”
“Canadian Solar is bringing an important piece of the renewable energy framework to North Carolina with this project. The estimated 509 construction jobs, plus the permanent positions, it will create are important factors for economic development in the state, along with providing a clean source of renewable energy for residents,” adds Adam Altenhofen, vice president of USBCDC.
CohnReznick Capital Markets Securities acted as financial advisor to Canadian Solar in the transaction.