Independent power producer Soltage raised a $142 million senior construction-to-term credit facility with Fifth Third Bank, National Association to fund a 110-MW solar portfolio of utility-scale solar assets across six states: Oregon, Illinois, Massachusetts, Rhode Island, North Carolina and South Carolina.
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Fifth Third served as Administrative Agent and Lead Arranger for this financing with Silicon Valley Bank (SVB) as Joint Lead Arranger on the investment. Soltage, working in partnership with Basalt managed funds, are deploying this investment through their previously established Helios capital vehicle.
This project demonstrates a larger trend as top-tier infrastructure investment institutions continue to place capital into solar assets.
“We are pleased to be working with Fifth Third and SVB on this portfolio of assets which will deliver low cost solar power to our customers, who now include power consumers in Oregon and Illinois,” said Shrips Ilango, Soltage Chief Financial Officer, “This transaction represents an expansion of our partnership with Fifth Third and further demonstrates the quality and bankability of a diverse portfolio of distributed solar assets to institutional investors.”
The trend indicates that solar has matured into a long-term, stable, low risk investment class for mainstream investors. According to Bloomberg New Energy Finance, global investment in renewable energy totaled $282.2 billion in 2019 and is expected to reach $300 billion in 2020. The global solar market specifically is on pace to grow about 14 percent in 2020, with new installed capacity to reach 121-154 gigawatts.
“Fifth Third is pleased to support a top-tier, reputable company in its efforts to build more distributed utility-scale projects across the country,” said Eric Cohen, group head of Renewable Energy Finance at Fifth Third Bank. “The relationship with Soltage enables us to put our capital to work to benefit many of the markets we serve, as well as the planet as a whole.”