Solar Frontier Completes Financing for 210 MW California Solar Project

Solar Frontier Americas has closed on the tax equity commitment and debt financing for its 210 MW Mustang Two solar project in Kings County, California.

Solar Frontier Americas (SFA), the US-based renewable energy business of Idemitsu Kosan, has announced that it has closed on the tax equity commitment and debt financing for its 210 MW Mustang Two solar project in Kings County, California.

Lenders for the approximately USD 176 million construction-to-term facility are KeyBank N.A. and Mizuho Bank, Ltd. Morgan Stanley Renewables has committed to making up to USD 120 million in tax equity financing for Mustang Two. CohnReznick Capital served as a financial advisor and Stoel Rives served as Solar Frontier Americas’ counsel in the deal.

Located on a 1,400-acre site, the Mustang Two project is currently under construction and is slated to begin commercial operation in 2020. Once complete, the project will be owned and operated by Solar Frontier Americas.

“Obtaining financing from these top tier lenders and tax equity providers is yet another major milestone and accomplishment for Solar Frontier Americas’ IPP and development business. SFA and our parent company, Idemitsu, continue to expand our US business with extraordinary partners dedicated to the growth of renewable power,” said Charles Pimentel, CEO of Solar Frontier Americas’ IPP business unit.

The 210 MW solar farm represents SFA’s largest project and financing to date. Recent projects include the acquisition of a 100 MW solar farm in Colorado and a 50.5 MW project in Stanislaus County, California.

The renewable power generated by the solar project will be sold through power purchase agreements (PPA) with Peninsula Clean Energy, which serves San Mateo County, and Modesto Irrigation District. The combined energy generation from the two contracts will power 37,500 homes with clean electricity.

“Mizuho is proud to partner with Solar Frontier Americas, an important Japan-based global client relationship,” said Naoki Matsunaga, vice president of Project Finance at Mizuho Bank. “As the first Asian bank to adopt the Equator Principles, Mizuho is focused on finding and financing such innovative renewable energy projects. It is especially gratifying that part of the deal is supplying energy to one of California’s community choice aggregators, amplifying the benefit in a state with pressing renewable energy goals.”

PC: Lightsource BP