Recurrent Energy, a global developer and owner of solar and energy storage assets announced the successful completion of project financing for its Liberty Solar project, boasting a capacity of 134 MW. The project, currently in its construction phase in Liberty County, Texas, approximately 50 miles northeast of Houston, is slated to commence operations in 2024.
Rabobank served as the Coordinating Lead Arranger and the Joint Lead Arranger, with Nord LB and U.S. Bank also acting as Joint Lead Arrangers. The financial package includes construction debt, a letter of credit facility, and a term facility, amounting to a total of $120 million, jointly provided by Rabobank, Nord LB, and U.S. Bank. Additionally, U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, has provided $80 million in tax equity for the project.
Earlier, Recurrent Energy had disclosed its achievement in securing a power purchase agreement encompassing the entire production capacity of the Liberty Solar project, achieved through an aggregated virtual power purchase agreement. Liberty Solar’s addition to the energy landscape will contribute to the expansion of solar energy capacity within the Midcontinent Independent System Operator (MISO) region, a vast area that encompasses the majority of Liberty County, the project’s location. Solar energy currently represents just 1% of the resource composition within the MISO region.
Speaking about the development, Paul de Waard, Executive Director, Rabobank, noted, “We are proud to successfully close another project financing with an industry-leading developer like Recurrent Energy and support its continuous growth across the U.S. and around the world. Recurrent Energy has been a valued Rabobank client for nearly a decade and the Liberty project is a perfect example of our partnership and support of the company’s renewable goals, which align perfectly with Rabobank’s commitment to the global energy transition.”
Eric Barr, U.S. Bancorp Impact Finance Vice President of Business Development for Environmental Finance, added, “We are thrilled to deepen our long-standing relationship with Recurrent while expanding clean energy infrastructure in the state of Texas. Recurrent’s partnership is critical in our efforts to create a more sustainable future for communities nationwide.”
Ismael Guerrero, CEO of Recurrent Energy, commented, “Liberty Solar is the second project financing that Recurrent Energy has closed in North America this summer, indicating execution on our strategy to retain greater ownership of projects in select markets. Moreover, Liberty Solar is a strong project in MISO, a growing market for solar energy. We value our long-standing relationship with Rabobank, Nord LB and U.S. Bancorp Impact Finance and we are grateful to reach this milestone together on another project.”