US independent power producer (IPP) BrightNight and Canadian asset manager Cordelio Power have secured a US$414 million construction credit facility for their 300MW Box Canyon solar project in Arizona.
Zions Bancorporation, an US bank, is the administrative agent and coordinating lead arranger for the deal, while the lead arrangers are the National Bank of Canada, the Royal Bank of Canada, the Canadian Imperial Bank of Commerce and the Sumitomo Mitsui Trust Bank of Japan.
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The companies, which are co-members of project owner BOCA, started construction on the project in December 2023, and will use the funds to complete construction and commissioning in the first half of 2025. BOCA has signed a 20-year power purchase agreement (PPA) with Arizona utility the Southwest Public Power Agency (SPAA) to sell power generated at the project, which forms part of BrightNight’s 37GW renewables portfolio.
“A critical part of being a next generation IPP and building out our portfolio is securing the right capital to deliver on our ambitious plans,” said BrightNight CFO Brian Boland. “Reaching financial close on a utility-scale project of this magnitude is an extensive undertaking.”
The news follows a number of fundraising initiatives completed by BrightNight, including the raising of US$375 million for solar-plus-storage projects, and a US$1.2 billion deal to develop a renewables portfolio in the Philippines.
Earlier this year, another Arizona utility, Salt River Project, commissioned a 260MW solar-plus-storage project in the state, as Arizona looks to expand its solar portfolio. According to the US Solar Energy Industries Association (SEIA), Arizona had the fifth-most capacity in operation at the end of 2023, with 7.7GW connected to the grid. The association expects the sector to grow by 9.1GW over the next five years, the fifth-most in the US.
