sPower Secures $700 Mn in Financing for 620 MW Solar Project

sPower Secures $700 Mn in Financing for 620 MW Solar Project

sPower has closed on USD 700+ million construction/term loan financing for the 620 MW dc Spotsylvania Solar Energy Center in Virginia

sPower Financing Solar

sPower, a leading renewable energy Independent Power Producer (IPP), has announced that the company closed on USD 700+ million construction/term loan financing for Spotsylvania Solar Energy Center in Spotsylvania County, Virginia. At 620 MW dc, this is the largest solar project east of the Rockies. The project is currently under construction, with phases coming online this year through project completion in the summer of 2021.

The full financing package for the Spotsylvania Solar Energy Center exceeds USD 1 billion. In April, sPower secured a USD 350 million tax equity commitment for this project with Wells Fargo’s Renewable Energy & Environmental Finance group. Nine separate banks committed the USD 700 million of capital needed for the construction/term loan financing, this completes financing for the project.

sPower received local approval of its three special use permit applications for the Spotsylvania Solar Energy Center in April of 2019, and construction began shortly after. The project was approved by the Virginia State Corporation Commission (SCC) in August of 2018.

“This has been a banner year for sPower in the capital markets. The Highlander financing sets an even higher watermark for us and marks the largest project debt financing in our company’s history, at more than USD 700 million,” said David Shipley, CFO, sPower.

HSBC was Sole Coordinating Lead Arranger, and the financing included eight additional Mandated Lead Arrangers: La Caixa, CIBC, National Bank of Canada, Citibank, Societe Generale, Landesbank and Banco de Sabadell.

“HSBC was delighted to have led the structuring and execution of this significant financing for the Highlander Project,” said James Wright, Managing Director, HSBC. “Closing a transaction of this magnitude in the current macro environment is challenging. The success of this transaction is a testament to sPower’s experience and the quality of the underlying assets, and the support of the broader lender group is a vote of confidence in renewable energy projects and sustainable finance.

The project will offset approximately 825,000 metric tons of carbon dioxide emissions each year and will generate an estimated 700 new jobs during the construction phase and approximately 20–25 full-time positions during operations. “Beyond what this means to sPower, this project brings real economic opportunity to Spotsylvania County and the region during a critical time,” said Ryan Creamer, CEO of sPower.

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.