Leeward Renewable Energy (LRE) has closed approximately $75 million in construction long-term financing from MUFG Bank Ltd. and approximately $105 million in tax equity commitment from Wells Fargo for its Horizon solar facility located in Frio County, Texas.
MUFG acted as the structuring agent for the green loan, coordinated the lead arranger and managing agent for the term financing of the construction, arranged financing commitments from eight financial institutions and Export Development Canada. The loan was issued based on the principles of a green loan, the goal of which is to promote and support environmentally sustainable economic activity.
The funding for the Horizon solar facility is a continuation of LRE’s previously announced funding for its Big Plain and Oak Trail solar projects. This is LRE’s fifth solar project in the country and second solar project in Texas after Reeves County’s Barilla Solar.
“We are pleased to provide tax equity financing for the Horizon Solar facility as Leeward continues to expand its solar portfolio,” said Samantha Buechner, president of Wells Fargo Renewable Energy and Environmental Finance. “Wells Fargo is committed to deploying $500 billion in sustainable financing by 2030 to support the transition to a secure, resilient and sustainable future, and projects like Horizon align with those same goals.”
The Horizon solar power plant is currently under construction. Once completed, it will generate enough electricity to power more than 42,000 US homes each year and provide 200 MW of renewable energy to Verizon Communications under a long-term power purchase agreement. The project is expected to be ready for commercial use later this year.