Recurrent Energy, a global developer of solar and energy storage assets, announced the successful closure of project financing for its Liberty Solar project, a venture set to add 134 MW (100 MWac) of solar energy to Liberty County, Texas. The project, currently in construction about 50 miles northeast of Houston, is anticipated to commence operations in 2024.
The financing was coordinated by Rabobank, with Nord LB and U.S. Bank acting as Joint Lead Arrangers, alongside Rabobank. Collectively, they will provide construction debt, a letter of credit facility, and a term facility, amounting to $120 million. In addition, U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, will provide $80 million in tax equity for the project.
Paul de Waard, Executive Director at Rabobank, expressed pride in closing yet another successful financing deal with Recurrent Energy, highlighting the alignment of their goals in contributing to the global energy transition. Eric Barr, Vice President of Business Development for Environmental Finance at U.S. Bancorp Impact Finance, emphasized the importance of expanding clean energy infrastructure in Texas to work towards a more sustainable future.
Liberty Solar aims to bolster solar energy capacity in the Midcontinent Independent System Operator (MISO) region, which presently constitutes only 1 percent of the resource mix. The project has secured a power purchase agreement for 100 percent of its production capacity through an aggregated virtual power purchase agreement, indicating a significant step towards a renewable future.
Ismael Guerrero, CEO of Recurrent Energy, celebrated the closure of Liberty Solar’s financing, underlining their strategy to retain greater ownership of projects in specific markets. Guerrero also expressed gratitude for the continued partnership with Rabobank, Nord LB, and U.S. Bancorp Impact Finance.
In concluding the transaction, CohnReznick Capital and Latham & Watkins provided advisory support to Recurrent Energy, while Milbank LLP and Foley & Lardner represented the lending institutions.