GUELPH, Ontario — Canadian Solar’s wholly owned subsidiary, Recurrent Energy, one of North America’s largest solar project developers, closed on a debt facility with Santander Bank, N.A. (Santander) and a tax equity investment commitment with U.S. Bancorp Community Development Corporation (USBCDC), securing financing for the 100 megawatt (MWac) Mustang solar power project. Recurrent Energy will be the managing member and plans to own and operate the project, currently under construction in California.
Under the agreements, Santander Bank will provide $165 million in construction lending, a tax equity bridge loan, and a term loan option, for the Mustang solar project. USBCDC is making a tax equity investment in the project, under a separate agreement.
“This agreement with leading investors such as Santander and USBCDC demonstrates our ability to develop consistently bankable solar projects,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “Securing financing for the Mustang project is an important milestone as we work to execute on our pipeline of late stage projects.”
“By supporting renewable energy projects like the Mustang facility, we can help sustain the environment and stimulate the economy,” said Jorge Camina, Head of Project Finance at Santander Bank, N.A. “Financing Canadian Solar and Recurrent Energy in this milestone project demonstrates our commitment to supporting leading sponsors of renewable energy projects.”
“USBCDC is excited to partner with Canadian Solar and Recurrent on this investment, which will lead to economic development and job creation in Kings County, while providing additional renewable energy resources to California electric customers,” said Adam Altenhofen, vice president of U.S. Bancorp Community Development Corporation, which invested $101 million in renewable energy tax credit equity in the project.
The Mustang project, covering an area of approximately 1,000 acres in Kings County, is expected to reach commercial operation in the fourth quarter of 2016. The project began construction in summer 2015 with Blattner Energy serving as the provider of Engineering, Procurement, and Construction services (“EPC”). The Mustang project is expected to generate enough clean solar energy to power approximately 28,000 homes. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under long-term power purchase agreements.
About Santander Bank
Santander Bank, N.A. is one of the largest retail banks in the United States by deposits. Its main corporate offices are in Boston and it operates principally in Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island. Santander’s 9,800 employees serve its 2.1 million customers through more than 670 branches and approximately 2,100 ATMs, call centers, website and mobile app. Supervised by the Office of the Comptroller of the Currency and a member of the Federal Deposit Insurance Corporation, Santander in the United States is a wholly-owned, financially autonomous subsidiary of Banco Santander (NYSE: SAN), a global commercial and retail bank.
About U.S. Bancorp Community Development Corporation
With nearly $16.5 billion in managed assets as of June 30, 2015, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC’s commitments provide capital investment to areas that need it the most and have contributed to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities.
About Recurrent Energy
Recurrent Energy, a subsidiary of Canadian Solar Inc., is redefining what it means to be a mainstream clean energy company, with utility-scale solar plants that provide competitive clean electricity. The company has more than 4 GW of solar projects in development in North America.
About Canadian Solar Inc.
Founded in 2001 in Canada, Canadian Solar is one of the world’s largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and a provider of solar energy solutions, Canadian Solar has a geographically diversified pipeline of utility-scale power projects. In the past 14 years, Canadian Solar has successfully deployed over 11 GW of premium quality modules in over 70 countries around the world. Furthermore, Canadian Solar is one of the most bankable companies in the world, having been publically listed on NASDAQ since 2006.