Canadian Solar subsidiary Recurrent Energy has closed on a tax equity investment commitment with GE Energy Financial Services for the 75-MW Astoria 2 solar project, currently under construction in Kern County, California. The solar developer also closed a debt facility for the project, expected expected to reach commercial operation in late 2016.
Astoria 2 is expected to generate enough electricity to power about 25,000 homes, while the electricity and associated renewable energy credits are sold under power purchase agreements.
Recurrent Energy plans to own and operate the facility, of which the company will be a managing member.
The five-member bank club includes Santander Bank, N.A., NORD/LB, Rabobank, Key Bank and CIT Bank, which will provide project-level construction debt, a letter of credit facility and a back-leveraged term loan facility for about $180 million.
“The Astoria 2 transaction completes the financing of Recurrent Energy’s late-stage portfolio and is our second transaction with GE,” said Shawn QU, chairman and CEO of Canadian Solar. “The support of this bank club and the expansion of our work with GE reflects our ability to consistently deliver high quality sola assets.”