CIT Group Inc., a financial holding company, says its power and energy business served as sole coordinating lead arranger for a $225 million letter of credit facility on behalf of 8minute Solar Energy, a developer of renewable energy projects nationwide.
8minute intends to use the credit facility to arrange power purchase agreements and interconnection agreements associated with its development pipeline of solar+storage projects, representing 18 GW of power in California, Texas and the southwestern U.S.
“8minute is pleased to continue to receive increasing investment and financing to help us deliver on our rapidly expanding pipeline,” says Dr. Tom Buttgenbach, president and CEO of 8minute.
“CIT has again demonstrated its agility and industry experience to arrange this financing and advance the deployment of our large-scale solar+storage projects,” he adds.
8minute is the largest privately-held solar power developer in the U.S., with nearly 2 GW of solar projects in operation and an additional 18 GW of solar and 24 GWh of energy storage under development, consisting of more than 50 utility-scale projects in various stages. The new letter of credit facility is 10 times larger than a previous version that it replaces, reflecting the strength and growth of 8minute’s pipeline in recent years.
In leading this letter of credit facility, CIT extends its track record as one of the top renewable energy lenders nationwide, according to market research firm Inframation, an Acuris company.
CIT led a group of four other banks in arranging the letter of credit facility. In addition to leveraging its financing and structuring experience, CIT is also providing a package of capital markets services and treasury management solutions.
Photo: 8minute’s Springbok 1 solar farm in Kern Country, Calif.