8minute Solar Energy has closed a US$225 million letter of credit facility with five major banks as it looks to power ahead with an 18GW pipeline of solar and storage projects in the US.
The financing facility will be used to post securities for power purchase agreements its signs and arrange interconnection agreements for a fledgling portfolio of more than 50 sites that spans California, Texas and other states in the Southwestern US.
The facility itself is a hybrid of project and corporate debt backed by assets belonging to 8minute and its joint venture partners.
The new line of credit replaces a previous facility signed with Rabobank and, at US$225 million, represent a tenfold increase on the original credit line secured in 2016.
Rabobank are once again among the banks providing the financing, joined by KeyBank, HSBC and Nomura Holdings, with CIT acting as sole coordinating lead arranger.
Tom Buttgenbach, president and CEO at 8minute, said the firm was “glad to continue working with core financial partners” at a “challenging time” for renewables financing.
The deal comes a month after 8minute added a further 3GW to its US pipeline to take it to 18GW, simultaneously announcing new corporate-level funding to grow its pipeline further.