MUFG, Nord/LB & Santander Arrange $590MM in Debt Financing for Vesper Energy

Vesper Energy, a developer, owner and operator of utility-scale renewable energy assets, closed $590 million in debt financing for its Hornet Solar project, which will aim to deliver renewable energy to communities throughout Texas, provide grid stability and mitigate price volatility in for the Electric Reliability Council of Texas (ERCOT). The bank group for the financing includes MUFG Bank, Nord/LB and Santander Corporate & Investment Banking as coordinating lead arrangers, Bayern as joint lead arranger, and Associated Bank as lender.

“Closing project financing and a long-term purchase agreement for the PTCs on a large project in west Texas is complex,” Robert Scheuermann, CFO of Vesper Energy, said. “We are proud to invest in Hornet Solar alongside top-tier lenders and investors. This closing is a testament to the value Vesper Energy generated in the asset.”

The Hornet Solar project, covering more than six square miles in Swisher County, TX, will generate 600 MWac, enough to power 160,000 homes annually.

“MUFG is pleased to jointly lead the debt financing for Vesper Energy’s largest solar project to date,” Matt Curtin, a director at MUFG, said. “This partnership reflects our confidence in the Vesper team and its ability to successfully deliver ambitious, clean energy solutions.”

“Financing critically important energy transition projects such as Hornet Solar reflects Nord/LB’s commitment to supporting Vesper Energy in the growing and maturing renewable energy sector,” Nicolai Dillow, managing director and head of originations at Nord/LB, said.

The debt financing leverages PTC transfer funding made possible by provisions under the Inflation Reduction Act. Through a purchase commitment arranged by Advantage Capital, more than $500 million of PTCs will be monetized and leveraged by the loan facility. Vesper Energy was advised by CCA Capital on the sourcing and structuring of the PTC transfer commitment.

“This transaction demonstrates Advantage Capital’s ability to structure creative financing solutions for a dynamic and growing renewable energy market. We’re thrilled to have achieved this outcome with Vesper Energy and look forward to expanding our partnership across many projects to come,” Michael Sponseller, vice president at Advantage Capital, said.

With a nameplate capacity of 600MWac and 745MWdc, the Hornet Solar project will utilize bifacial photovoltaic modules on a single axis tracking system. Hornet Solar interconnects to Oncor Electric’s transmission system in ERCOT.

Blattner Energy is constructing the Hornet Solar project. The power generated by the project is contracted to four off-take partners through individual power purchase agreements.

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