CIT arranges funding for 250-MW solar project in Texas

US bank CIT Group Inc (NYSE:CIT) has acted as coordinating lead arranger on a USD-256-million (EUR 211.6m) debt financing for a 250-MW solar project in Texas.

The Taygete I Energy Project is the first phase of a larger project developed and owned by Texas-based 7X Energy Inc. The financing deal, conducted by CIT’s Power and Energy business, involved five other lenders, apart from CIT, the latter said on Wednesday without providing names.

Located in Pecos County, the Taygete I photovoltaic (PV) plant is already built and is expected to be brought online at the start of next year. Swinerton Renewable Energy was in charge of its construction. Once fully operational, the 250-MW solar farm will be selling a portion of its output under a long-term hedge agreement to J Aron & Company LLC, which is a unit of Goldman Sachs. An unnamed entity with a "S&P A-" rating will be the other off-taker.

7X Energy has 1,350 MW of solar projects in operation or under construction in Texas. According to its website, the Taygete complex will be one of the largest ones of its kind in Texas, with a power generation capacity of 602 MWp. Its second phase is due to be online in the third quarter of 2021.

(USD 1.0 = EUR 0.827)

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