USD270 million Financing received for 400 MW Tierra Bonita Solar Project in Pecos County

Ashtrom Renewable Energy has announced US$270 Million in Green Financing for the 400 MW Tierra Bonita Solar Project in Pecos County, Texas, USA.

A green financing agreement worth around US$270 million has been signed with a consortium of five banks: BHI (the U.S. arm of Bank Hapoalim Group), Bayerische Landesbank, ING Capital, Rabobank, and Société Générale. The Tierra Bonita project, set on approximately 2,400 ac in Pecos County, involves a total investment of about US$435 million. It aims to achieve a planned capacity of approximately 400MWdc (306 MWac). It is currently under construction, and commercial operation is expected by Q4 2024.

The Tierra Bonita initiative was created through collaboration between Ashtrom Renewable Energy and its local partner, OnPeak Power, LLC. Mortenson serves as the project's EPC contractor, while Morgan Lewis and Marathon Capital provided guidance to Ashtrom Renewable Energy. Stonehenge Capital received legal counsel from Allen & Overy. Moreover, Ashtrom Renewable Energy entered into a Tax Credit Transfer Agreement (TCTA) to transfer the production tax credit (PTC) generated by the project to a reputable U.S. institutional entity with a high credit rating (Aa3 Moody's) over a ten-year duration. The PTC's total value is approximately US$300 million.