MUFG Provides $136MM in Financing for Municipal Solar Project in Florida

Origis Energy, a renewable energy and decarbonization company, closed a $136 million construction financing facility and conversion to term loan with MUFG for its Rice Creek Solar project under construction in Putnam County, FL, for the Florida Municipal Power Agency (FMPA) and its members.

Rice Creek Solar is a 75 MW project nearing completion. The project entails the construction of a PV solar facility contracted by the FMPA for its members. The FMPA will serve as the project coordinator for its member-owners, who will purchase power from the Rice Creek Solar facility. Origis Energy is the builder, owner and operator of the project.

“Origis and MUFG continue to build a strong alliance. MUFG’s deep expertise in this sector and their well-defined underwriting process enable Origis to focus on speed to market and successful scaling of our business,” Vikas Anand, CEO of Origis Energy, said. “Rice Creek Solar is a perfect example of moving the clean energy transition forward through collaborative municipal programs. We thank MUFG for their support and look forward to delivering the project for FMPA.”

“This transaction is another testament to our strong relationship with Origis Energy and our commitment to supporting the development of renewable energy projects in Florida and across the country,” Patrick Klein, senior originator on the project finance Americas team at MUFG, said. “We are proud to be part of this important initiative that will provide clean and affordable power to FMPA’s member communities while creating jobs and economic opportunities in the region.”

Latham & Watkins represented Origis Energy in the transaction, with Akerman serving as local counsel. Milbank acted as MUFG’s counsel, with Greenberg Traurig serving as MUFG’s local counsel.

Rice Creek Solar is expected to qualify for an Energy Community Adder to Investment Tax Credits under the Inflation Reduction Act (IRA) provisions. The additional IRA incentive is rare for Florida-based solar projects and is due to its proximity to a recently decommissioned coal power plant in the same census tract. The project will power the equivalent of 14,000 homes and avoid 74,000 metric tons of CO2 each year.

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