Energix Closes $520 Million Financing and Tax Equity Deal to Fund New Solar Projects

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Jun 29, 2023, 14:35 ET

Two deals with Morgan Stanley Renewables Inc. and Santander CIB will help finance the construction and operation of six utility-scale solar projects across Virginia and Pennsylvania

ARLINGTON, Va., June 29, 2023 /PRNewswire/ -- Energix Renewables, a global renewable energy leader, has announced the successful closing of two project financing transactions with Santander Corporate & Investment Banking ("Santander CIB"), as the sole underwriter and structuring bank of a construction financing and term loan which includes a Tax Equity bridge loan, and Morgan Stanley Renewables Inc. ("Morgan Stanley"), as a tax equity investor, in connection with 6 utility scale solar projects located in Virginia and Pennsylvania totaling $520 million dollars in the aggregate.

The financing for each transaction is expected to involve a consortium of lenders led by Santander CIB providing a construction and term loan facility, and Morgan Stanley acting as a tax equity investor. The total construction and term-loan amount committed by the lenders is $260 million, and the total tax equity commitment is $260 million; provided, however, the total tax equity contribution could be higher based on the project companies' ITC (investment tax credit) eligibility. The funds acquired through these transactions will be used to further Energix's commitment to bring clean, reliable, and affordable energy to local communities through the addition of six utility-scale solar projects in Virginia and Pennsylvania.

Entering into financial partnerships with Morgan Stanley and Santander CIB, both leading global financial services firms, allows Energix to support US domestic energy independence and bring its total investment in American energy infrastructure to close to a $1 billion. The projects funded by this transaction will provide 416MWdc of domestically produced power to local grids and adds a significant boost to the local economies through increased tax revenues and the creation of hundreds of well-paying construction jobs. Utility-scale solar projects give communities access to affordable energy production, as in the case of Adams Solar project within the portfolio of this transaction, which will provide 22 percent of the City of Philadelphia's municipal electricity use.

"Energix is delighted to further strengthen its longstanding partnership with Morgan Stanley. This continued collaboration reinforces Energix's position as a leading independent power producer in the US market," said Asa (Asi) Levinger, CEO, Energix – Renewables Energies, Ltd.

The latest transaction marks the third tax equity deal Energix has closed with Morgan Stanley. The prior two deals were closed in 2020 and 2021 and were associated with eight projects in Virginia totaling approximately 200MWdc.

"We are pleased to deepen our relationship with Energix by investing in a portfolio of renewable energy assets and continue supporting the decarbonization of the U.S. grid," said Jorge Iragorri, Managing Director and Head of Renewable Energy Investments at Morgan Stanley.

"Energix is thrilled to announce this new collaboration with Santander CIB. This partnership opens up exciting avenues for Energix to expand its footprint and harness Santander's extensive network and resources," said Itamar Sarussi, Country Manager, Energix US. "We appreciate the trust and confidence that major banks have placed in the company. Through partnerships like this, Energix can develop utility scale solar projects and to produce clean electricity for the benefit of the communities in Virginia and Pennsylvania."

Santander CIB has a strong focus on environmental and social responsibility and this new partnership expands Santander CIB's portfolio of environmentally conscious investments. Energix is also working with Santander CIB in Poland, and by expanding the partnership to the US Energix and Santander CIB are fostering international collaboration and accelerating the adoption of renewable energy technologies across diverse geographies.

"Santander Corporate & Investment Banking is proud to continue supporting Energix in the development of their global renewable pipeline by expanding our existing relationship to the US allowing the Company to continue delivering high-quality utility scale projects," said Nuno Andrade, Head of Structured & Acquisition Finance in the US. "Energix is bringing their knowledge and strong experience to the US and we are very excited to have supported Energix in their first financing transaction. We congratulate all the parties involved for this exceptional achievement."

Energix Renewables entered the US market in 2016 and quickly became one of the leading utility-scale solar developers in the Mid-Atlantic. The company has is committed to identifying community partners, hiring local contractors, and investing in American-made equipment. Energix develops effective energy solutions while exclusively using American-made panels from First Solar, the largest American panel manufacturing company. By engaging in partnerships with these respected financial institutions, Energix is able to expand its footprint across the Mid-Atlantic and grow the solar workforce in the localities surrounding our projects.

Today Energix Renewables owns, operates, and maintains nine facilities with a capacity of 224 MWdc across the Mid-Atlantic. With the additional investment from Morgan Stanley and Santander CIB, Energix is projected to have 640 MWdc of operational projects by the end of 2023.

About Energix

Energix Renewables is an independent power producer (IPP) that develops, constructs, owns and operates renewable energy projects across the United States. Headquartered in Arlington, Virginia, Energix Renewables is one of the leading solar energy players in the Mid-Atlantic with nine operational projects, six more in construction and many more in development.

Energix Renewables is part of a global company with operations in the United States, Israel, and Poland. With close to $1 billion invested in the United States alone, we use our financial stability and extensive project execution experience to build projects that create long-term value for local communities, landowners, our stakeholders, and the environment. To learn more, please visit energixrenewables.com

SOURCE Energix Renewables