8minute Gets $225 Mn Loan from CIT Consortium for 18 GW Solar + Storage Projects

8minute Solar Energy (8minute), a leading independent solar energy and storage projects developer in the United Sates, has secured a USD 225 million letter of credit (LC) facility from CIT led consortium.

The consortium led by CIT as a sole coordinating lead arranger is comprised of 5 banks including KeyBank, HSBC, Rabobank and Nomura Holdings.

Further, the loan amount will be used by the US-based solar project developer for cost-effectively posting securities for its power purchase agreements (PPAs) and interconnection agreements for its 18 GW pipeline of solar and storage projects spread across California, Texas and the Southwestern United States.

Commenting on successfully closing the lending deal, Dr. Tom Buttgenbach, President and CEO of 8minute, said that “in this challenging time, 8minute is pleased to continue to receive increasing investment and financing to help us deliver on our rapidly expanding pipeline. We are glad to continue working with core financial partners who share our commitment to unlocking an affordable and clean energy future.”

The company has one of the largest development pipelines of solar and solar-plus-storage projects in the US, including over 50 utility-scale projects in various stages of development, with 400 MW of capacity.

Moreover, this new credit facility is expected to replace the company’s existing facility with Rabobank closed in 2016. It will represent a 10-fold rise in capacity, underscoring the strength and growth of the company’s project pipeline over the past 4 years.

The move is in line with the company’s recent announcement of new corporate-level funding from its joint venture partners – JP Morgan, Upper Bay and the newly-added University of California (UC) Office of the CIO of Regents.

Mike Lorusso, Managing Director and Group Head for CIT’s Power and Energy Business, said that “we are delighted to expand our relationship with 8minute by arranging this first-of-a-kind financing facility. 8minute has a superior track record on project execution and rigorous approach to project financing, and we look forward to continuing to support their financing needs.”

In April this year, the company said that it has added 3 GW of large-scale solar projects to its development pipeline this month, for a total of more than 18 GW, which is enough to provide power for 20 million people.