Swift Current Energy has announced it has closed project financing for its 800MWdc (593MWac) Double Black Diamond Solar project in the US, securing $779m.
Once operational, the site is expected to be second largest single phase solar development in the country, and the largest solar project in MISO, producing enough energy each year to power the equivalent of more than 100,000 homes.
Located 30 miles west of Springfield, Illinois, Double Black Diamond Solar is currently under construction and scheduled to be energized in 2024.
Mitsubishi UFJ Financial Group (MUFG), Societe Generale, and Truist served as the coordinating lead arrangers, with MUFG and Societe Generale acting as Joint Bookrunners for the landmark project financing, which includes $695m in construction and tax equity bridge loans and an $84 million letter of credit facility, making it one of the largest project financings ever for a US solar project.
ING acted as the Green Loan Structuring Agent and Wilmington Trust acted as the Collateral Agent and Depositary Agent. Swift Current is the project developer and will be the long-term owner and operator.
“Double Black Diamond Solar is a transformative project, not only for our team, but also the American workers it is employing, the massive amount of emissions-free energy it will produce, and the stable revenue it will provide for the communities in Sangamon and Morgan counties,” said Swift Current chief executive and co-founder Eric Lammers.
“We are pleased to work again with MUFG, Societe Generale, ING, and Wilmington Trust and are excited to add Truist as a new partner,” Lammers added.
“Since we began development of the project in 2018, the Swift Current team has felt a deep sense of conviction for Double Black Diamond Solar. I’m delighted today to reach this record-setting milestone and recognize my team and our construction and financing partners’ dedication to this project.”
Managing director of project finance at MUFG Louise Pesce said: “MUFG is proud to continue our partnership with Swift Current Energy with this new deal.
“This transaction demonstrates our bank’s commitment to supporting the climate transition economy through offering financing solutions for renewable energy projects.
We look forward to working on more renewable energy projects in Swift Current Energy’s pipeline.”
Societe Generale’s Energy+ Group director Ahmed Maqsood added: “This was an especially gratifying financing for the bank to lead and support given the tangible positive impact the project will have on the state’s economy and in meeting the growing demand for renewable energy from various institutions within the state.”
Truist Securities director of project finance Uzoma Enyinna said, “We’re extremely pleased to support Swift Current Energy on the financing of the Double Black Diamond Solar project, extending the relationship with Swift Current and the teams at BAES Infrastructure and IFM, focusing on a cleaner and greener future together.”
BAES Infrastructure is the majority owner of Swift Current Energy, with the other owners being IFM Net Zero Infrastructure Fund and Lookout Ridge Energy Partners.
“I would like to congratulate the Swift Current team and our partners for their hard work in getting to this achievement,” said BAES Infrastructure chief executive Jamie Cemm.
“Double Black Diamond will meaningfully advance the energy transition at the local, state and national level, while bringing tangible economic benefits to the local community and US workers.”
Executive director, infrastructure at IFM Investors Neil Doherty added: “This is a landmark transaction for Swift Current and a significant step toward building Swift Current into an industry-leading independent power producer. I am grateful to our partners for supporting us in getting to this milestone and look forward to working together again on future projects.”
During its operational life, Double Black Diamond Solar is expected to provide $100 million in tax revenue to Sangamon and Morgan counties in central Illinois, where the project is located.
Vinson & Elkins LLP and Husch Blackwell LLP represented Swift Current in the transaction. Paul Hastings LLP advised MUFG, Societe Generale, Truist, and the other lenders party to the financing agreements.