DESRI Closes Financing of 80 MW Sigurd Solar Project in Utah

With the beginning of construction on its fourth utility-scale solar project in Utah, D. E. Shaw Renewable Investments (DESRI) has closed the financing of the 80 MW Sigurd Solar project by securing both construction debt and tax equity financing.

Commenting on the closing of the financing, David Zwillinger, CEO of DESRI, said that “the COVID-19 crisis made this a particularly challenging environment to close an acquisition, financing, and tax equity investment.”

Zwillinger further thanked the lenders by stating that “we are grateful for the ongoing support of our partners at HSBC, Societe Generale, City National Bank, and M&T, who worked tirelessly to close this transaction in spite of unprecedented headwinds. DESRI is pleased to start construction on its fourth utility-scale solar project in Utah and bring high-quality jobs to Sevier County.”

Further, the Sigurd Solar project, located outside the town of Sigurd in Sevier County, Utah, commenced construction in late 2019 and is expected to employ more than 300 people. Besides, it is also likely to create significant tax revenue for Sevier County over the project life.

Moreover, the company had acquired the project in early 2020 from an affiliate of Oakwood Construction Services, which it has also retained to provide EPC services.

However, the construction and term loan financing for this Sigurd solar project was provided by a syndicate of lenders including HSBC, Societe Generale, and City National Bank, while M&T provided a commitment for tax equity financing.

On the project financing, James Wright, Managing Director of HSBC Bank USA, said that “HSBC was delighted to lead the financing for the Sigurd solar project, which closed during a particularly challenging market backdrop.”

Wright further added, “HSBC is committed to sustainable financing, and we are focusing on deals that increase investment in clean energy while also supporting the post-COVID global economic recovery.”

This project is expected to reach commercial operation during H1 of 2021 and has a 25-year long-term power purchase agreement (PPA) with PacifiCorp. It will also support Facebook’s operations in the area with new solar power.

“We are thrilled to partner again with DESRI on the Sigurd project. Sigurd reflects M&T’s continued commitment to the renewable energy sector and a clean energy future,” said Eric Heintz, Director of Energy Finance at M&T.

Meanwhile, the Sigurd facility is expected to generate enough clean energy to power approximately 18,500 homes every year. Additionally, SOLV, Inc. will provide ongoing operations and maintenance (O&M) services to the facility.

Recently, DESRI has also acquired the Hunter solar project of 100 MW capacity in Utah from a Pennsylvania-headquartered renewable energy project developer.

Besides acquisition, DESRI has also closed on the financing and a tax equity commitment for this solar project.