US renewables developer Solar Frontier Americas (SFA) has closed on the tax equity commitment and debt financing for its 210MW Mustang Two photovoltaic project in California.
SFA, the US-based renewable energy business of Idemitsu Kosan, is building the solar farm in Kings County, which is slated to start commercial operation in 2020.
The renewable power generated by Mustang Two will be sold through power purchase agreements with Peninsula Clean Energy, which serves San Mateo County, and Modesto Irrigation District.
Lenders for the approximately $176m construction-to-term facility are KeyBank and Mizuho Bank.
Morgan Stanley Renewables has committed to make up to $120m in tax equity financing for Mustang Two. CohnReznick Capital served as financial advisor and Stoel Rives served as Solar Frontier Americas’ counsel in the deal.
Once complete, SFA will own operate the project.
SFA independent power producer business chief executive Charles Pimentel said: “Obtaining financing from these top tier lenders and tax equity provider 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.”
Mustang Two is SFA’s largest project and financing to date. Recent projects include the acquisition of a 100MW solar farm in Colorado and a 50.5MW project in Stanislaus County, California.