Sol Systems, an independent power producer, has closed a $675mn revolving credit line to finance the construction of new solar and storage projects in the United States. This operation will support the rollout of an initial tranche of 500 megawatts (MW) of capacity in Illinois, Ohio and Texas, with commissioning expected before the end of 2026, Bloomberg reported on July 16.
A structuring financing for Sol Systems
The three-year credit line will enable Sol Systems to finance both construction loans and bridge loans for equity contributions as well as letters of credit. The financing was arranged with the support of KKR Capital Markets acting as structuring and placement agent. Bracewell LLP advised Sol Systems while Milbank LLP represented the lenders’ group.
Among the institutions participating in the syndicate are Banco Bilbao Vizcaya Argentaria S.A., ING Capital LLC, Intesa Sanpaolo S.P.A., National Australia Bank Limited, NatWest and Natixis. ING Capital LLC also acted as Documentation Agent and, together with Intesa Sanpaolo S.P.A. and Natixis, structured the financing as a green loan.
Momentum driven by regional energy markets
Sol Systems states that this financing responds to the growing demand for electricity from large-scale solar projects, both from corporates and utilities. The projects concerned are part of decarbonisation objectives supported by the states and local companies, according to Sol Systems Chief Development Officer Dan Diamond.
Richard Romero, Chief Financial Officer of Sol Systems, said that “this facility is an important step in growing Sol’s operating portfolio”, thanking financial partners for their trust. The portfolio of funded projects corresponds to a set of shovel-ready assets identified for their potential to meet market needs.
Strengthening operational capacity
Sol Systems thus plans to strengthen its ability to deploy solar and storage assets at a sustained pace. The operation confirms the company’s ability to attract major financial partners in the US market. The syndicate, composed of international banks, reflects the attractiveness of the US renewables market for large project finance players.
The financing obtained allows Sol Systems to consolidate its market position as an independent power producer, as demand for new solar and storage capacities continues to rise in several regions of the United States.
