Forgot your password?
Please enter your email & we will send your password to you:
My Account:
Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
Vesper Energy, a developer, owner, and operator of utility-scale renewable energy assets, has announced the closing of an innovative financing that includes a letter of credit (L/C) facility for its Hornet Solar project.
The financing uniquely leverages production tax credits (PTCs) of more than US$500 million for the site in the US state of Texas, which is one of nation's largest single-phase solar projects.
Banks involved
Vesper has secured a US$590 million debt financing package for the Hornet Solar project, consisting of a construction-to-term loan and L/C facility.
The bank group includes MUFG Bank, Nord/LB and Santander Corporate & Investment Banking as coordinating lead arrangers, Bayern/LB as joint lead arranger, and Associated Bank as lender.
Leveraging renewables incentive
The debt financing leverages PTC transfer funding, a form of federal incentive designed to encourage the development and deployment of renewable energy, including solar power.
PTCs provide financial benefits to project developers, typically based on the actual renewable energy production of the project.
Monetising US$500 million
Through a purchase commitment arranged by Advantage Capital, which works with renewable energy developers to expand community access to clean energy, more than US$500 million of PTCs will be monetised and leveraged by the loan facility.
The Hornet Solar project, covering more than six square miles in Swisher County, Texas, will generate enough energy to power 160,000 homes annually.
This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.