Forbright Bank provides funding for solar parks
By The Star Staff
Forbright Bank, a nationwide full-service bank that is helping accelerate the transition to a clean energy economy, has successfully raised and syndicated debt facilities for Infinigen Renewables to finance two solar parks in Puerto Rico.
Infinigen, a subsidiary of ArcLight Energy Partners Fund VII LP, owns and operates the Oriana in Isabela and Horizon in Salinas.
The solar parks provide a total generation capacity of 73 megawatts (MW). Both assets are fully contracted under 20-plus-year term power purchase contracts with the island’s utility, the Puerto Rico Electric Power Authority (PREPA).
Forbright acted as first lien administrative agent, offshore collateral agent and lender. It was joined by Generate and Banco Popular as first lien lenders in the transaction.
Transitioning to sustainable solar resources is essential for Puerto Rico to enhance safety and reliability, and lower the cost of power, a statement from the Chevy Chase, Maryland-based bank says.
Under Puerto Rico’s Act 17, PREPA must meet a 40% renewable generation goal by 2025, scaling up to 100% renewable energy by 2050. As of 2021, only 3% of the island’s energy was generated by renewables with the rest of the distributed energy powered by higher cost imported oil, coal and fracked gas.
The Forbright-financed solar projects help to progress the island’s energy transition, which will provide for cleaner, more storm-resilient, and localized power generation.
“This financing is another example of the role Forbright plays in speeding the transition to a cleaner economy,” said Don Cole, CEO of Forbright Bank. “Supporting ArcLight and its Infinigen solar platform is a key part of Forbright’s mission to finance companies taking action to decarbonize the economy.”
Forbright Bank said it is committed to accelerating the transition to clean energy by providing financing for projects and technologies that support decarbonization and sustainability. Forbright has committed to dedicating half its portfolio by 2025 to financing the companies, investors, and innovators – like Infinigen – taking action to increase sustainability and shift to a lower-carbon economy.
“Infinigen and ArcLight are pleased to partner with Forbright Bank on this transaction,” stated Gavin Danaher, partner at ArcLight. “The relationship with Forbright provides us an opportunity to partner with companies that not only contribute to a lower carbon future, but also have a deep understanding of renewable financings. Forbright and its syndicate partners provided Infinigen capital that will allow the Infinigen platform to develop additional solar projects in Puerto Rico.”