Solar power company Canadian Solar has announced that its subsidiary, solar project developer Recurrent Energy, has signed off on both a debt facility with Santander Bank and a tax equity investment commitment with U.S. Bancorp Community Development Corporation (USBCDC) — notching funds for the 100MW Mustang PV project in the process.
As part of the deals, Santander Bank will offer US$165 million in construction lending, a tax equity bridge loan, and a term loan option, for the Mustang installation. Recurrent Energy will serve as the managing member of the project — which is currently under construction in California — and also expects to own and operate the project.
Dr. Shawn Qu, chairman and chief executive officer at Canadian Solar, said: “This agreement with leading investors such as Santander and USBCDC demonstrates our ability to develop consistently bankable solar projects. Securing financing for the Mustang project is an important milestone as we work to execute on our pipeline of late stage projects.”
Jorge Camina, head of project finance at Santander Bank, added: “By supporting renewable energy projects like the Mustang facility, we can help sustain the environment and stimulate the economy. Financing Canadian Solar and Recurrent Energy in this milestone project demonstrates our commitment to supporting leading sponsors of renewable energy projects.”
The Mustang project, which will cover an area of 404 hectares in Kings County, California, is expected to commence operations in the fourth quarter of 2016. Construction on the site began in the summer of 2015 with Blattner Energy offering engineering, procurement and construction (EPC) services.
Once completed, the installation is expected to produce enough energy to power around 28,000 homes.