Ashtrom Renewable Energy Announces $270 million financing for its solar project in Texas
In Texas, Ashtrom Renewable Energy announced the signing of a green financing totaling $270M with a group of five banks for its 400 MW Tierra Bonita Solar Project in Texas.
The banks participating in this financing scheme are BHI, the U.S operation of Bank Hapoalim Group, Bayerische Landesbank, ING Capital, Rabobank and Société Générale.
In addition, Ashtrom Renewable Energy signed a Tax Credit Transfer Agreement (TCTA) to sell the production tax credit (PTC) to be produced by the project over a ten-year period to a highly rated U.S. institutional entity. The total value of the PTC is estimated at nearly $300 million. The Tierra Bonita project is one of the very first solar projects in the U.S. to complete a Tax Credit Transfer Agreement for solar PTCs under the new Inflation Reduction Act (IRA), and complete financing under a project finance structure, the company said.
“The financial closing of the Tierra Bonita project marks a significant milestone for Ashtrom Renewable Energy, demonstrating confidence in our strong capabilities to execute the development, planning, financing and construction of our first large-scale solar project in the U.S., with a total investment of approximately $435 million,” said Yitsik Mermelstein, CEO at Ashtrom Renewable Energy.
