Pennsylvania-based Doral Renewables has successfully closed of a project debt financing package that includes letter of credit (L/C) support for the initial construction of the remaining phases of its Mammoth Solar complex located in the US state of Indiana.

The L/Cs will provide financial security, reduce risks for all involved parties, and ensure smooth transactions in this complex, capital-intensive renewable energy construction project.

Deal structure

KeyBanc Capital Markets acted as coordinating lead arranger and administrative agent, and HSBC and Santander Corporate & Investment Banking acted as joint lead arrangers for the US$285 million financing, which consists of a US$200 million construction loan facility and US$85 million of additional support via L/Cs.

The remaining phases of Mammoth include three 300 megawatt ground-mounted single-axis photovoltaic systems.

Doral already successfully completed in July the construction on the first phase of the Mammoth complex, the 400 MW Mammoth North project located in Starke County, Indiana.

Agrivoltaics intiatives

Mammoth Solar is at the centre of Doral Renewables' innovative agrivoltaics initiatives, which combine on-site livestock grazing and crop cultivation and solar energy production on the same piece of land.

The goal is to optimise land use by allowing farmers to continue their farming operations in tandem with solar panels, thus creating a synergy between food and energy production.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.