Two projects totaling 430 MW are expected to be supported by the funding.
Renewable energy developer, owner and operator Arevon Energy announced it secured $509 million for its Kelso 1 & 2 solar projects under development in Scott County, Missouri.
The two large utility-scale solar projects are expected to add 430 MW to the Missouri electric grid. Once complete, the two projects would add nearly 50% to the state’s total solar capacity, which stood at 894 MW through the end of 2024, according to the Solar Energy Industries Association (SEIA).
The financial closing represents the eighth transaction of its kind by Arevon in the last eighteen months, bringing funding to $3.7 billion.
The two-phase project is expected to create 450 construction jobs during peak construction. When complete, the operational project is estimated to generate $34 million in disbursements to local governments over its life, funding schools, infrastructure and vital services.
The financing package is comprised of a $245 million bridge loan, a $172 million construction loan and $92 million of credit support.
Arevon is expanding its development in the Midwest. It is developing four solar projects in Indiana totaling 744 MW with capital costs of over $1.1 billion.
“Utility-scale solar projects are essential contributors in strengthening the American economy through the creation of competitive-wage jobs, local tax revenue, and other steady, reliable benefits that enhance communities,” said Kevin Smith, Chief Executive Officer at Arevon. “Kelso Solar will add resilience and security to America’s energy infrastructure, and Arevon looks forward to advancing our development activities in America’s Heartland.”
Arevon owns and operates more than 4.5 GW of utility-scale solar and energy storage in the United States as well as distributed generation projects in 17 states. It is currently construction more than 1.4 GW of new solar and storage projects and has a development pipeline of over 6 GW.
Canadian Imperial Bank of Commerce (CIBC) was the administrative agent, left lead arranger and bookrunner. CIBC, Commerzbank, Commonwealth Bank of Australia, Lloyds Bank and National Bank of Canada served as the projects’ lenders, coordinating lead arrangers and green loan coordinators while BNY acted as the collateral agent. Sponsor counsel was provided by Amis, Patel & Brewer, LLP, lender counsel by Milbank LLP, local counsel by Husch Blackwell, and lender local counsel by BCLP.
