Commercial, Finance, Solar - November 30, 2022
Future Verizon Solar Project Closes Financing
A 296 MW solar project that will one day provide clean energy to Verizon Communications received enough funding from Wells Fargo’s sustainable finance program and MUFG Bank to begin construction.
Leeward Renewable Energy closed approximately $420 million in construction-to-term financing from MUFG Bank and a $195 million tax equity commitment from Wells Fargo to fund its Big Plain Solar Facility in Ohio and its Oak Trail Solar Facility in North Carolina.
Wells Fargo’s commitment came from its Institute for Sustainable Finance, which was established in 2021 with a goal to provide $500 billion in financing to sustainable businesses and projects by 2030. Approximately $68 billion of this finance was deployed in 2021.
MUFG served as the Green Loan Structuring Agent, Coordinating Lead Arranger and Administrative Agent for the deal, arranging financial commitments from eight financial institutions and Export Development Canada (EDC).
The solar facilities are now under construction and are expected to be operational by mid-2023. The energy generated at the facilities will provide renewable energy to Verizon under a long-term PPA.
“We are pleased to have secured financing for our Big Plain and Oak Trail projects, marking another significant milestone in the development of our solar energy portfolio,” Chris Loehr, Senior Vice President of Finance at Leeward Renewable Energy, said in a statement. “These agreements demonstrate the continued confidence financial institutions hold in our project portfolio and performance as we continue to execute on our contracted 2022 – 2023 pipeline. We appreciate the continued support from each of our participating financial institutions, particularly under terms that help advance and enhance LRE’s own environmental and social initiatives.”