Innergex closes USD-192m financing for Ohio solar project

Phoebe Solar image by Innergex (www.innergex.com).

May 8 (Renewables Now) - Canada-based Innergex Renewable Energy Inc (TSE:INE) said on Thursday it has obtained a total of USD 191.8 million (EUR 177m) in financing for the 200-MW Hillcrest solar photovoltaic (PV) project in the US state of Ohio.

The renewable power producer will receive a construction term loan of USD 82 million and a USD-109.8-million tax equity bridge loan from a lender group composed of CIT Group, MUFG and Mizuho. Coupled with an equity commitment of USD 87.7 million from Innergex itself, this will be enough to cover total construction costs estimated at USD 279.5 million.

Once the plant is up and running, Wells Fargo’s Renewable Energy & Environmental Finance group will make a tax equity investment that will help pay back the tax equity bridge loan, the announcement says.

The Hillcrest solar park will be built in Brown County, where it will generate a gross estimated long-term average of 413.3 GWh. The project has a power purchase agreement (PPA) with an unnamed “investment grade rated US corporation” and is eligible for a federal Investment Tax Credit (ITC) sized to about 30% of its eligible value.

“We have contingency plans and measures in place to address any problems that may arise due to the current pandemic, and unless a decree is issued to halt construction, Hillcrest should come online by the end of the year,” said Michel Letellier, president and CEO of Innergex.

Innergex expects the project to generate USD 10.7 million in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) on average for the first five years of operation.

(USD 1.0 = EUR 0.923)

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