• US$145M Construction-to-term loan led by CIT, a division of First Citizens Bank & Trust Company
• US$71M Tax Equity Commitment secured with Monarch Private Capital
• Proceeds to be used to finance the construction of 15 New York State-based community solar development projects
OYA Renewables ("OYA"), a leading energy transition solutions platform, announced that it has secured a total of US$216M in financial backing for the construction of a slate of 15 community solar development projects throughout New York State which make up part of its 2023 pipeline.
Of the US$216M in total financing, US$145M has been secured as a construction-to-term loan. CIT Power and Energy acted as lead on the loan, coordinating a syndicate of participating banks which was comprised of Amalgamated Bank, Siemens Financial Services Inc., Comerica Bank and Cadence Bank.
OYA secured an additional US$71M in project funding with Monarch Private Capital (MPC) in the form of a tax equity investment. The investment will see MPC participate in the funding of OYA's slate of 2023 projects via their ESG-oriented impact funds. As a result, MPC's investors will receive a federal tax credit through its funds in proportion to their level of ownership and see potential positive cash flow when the solar projects are up and running. Several of the projects located within low-income communities will qualify for additional tax credits of up to 20%, taking the total potential credits from 30% to as high as 50%.
"The level of financial backing we've secured via these commitments is another major milestone for OYA. Not only does it significantly increase our asset base, it also advances our transition from being a developer to an independent power producer," said Manish Nayar, Chairman and founder of OYA Renewables. "These types of investments from highly-progressive banking partners are critical to the financing of renewable energy projects. Without them, we wouldn't be the major force we are in the NY community solar market and the US energy transition could not have generated the incredible momentum it's seeing now."
"We appreciated the opportunity to collaborate with OYA in arranging financing for these important community solar projects, which enhance New York State's renewable power generation capacity and support economic development and growth," said Mike Lorusso, managing director and group head for CIT's Power and Energy business, part of First Citizens Bank.
"We are grateful for the opportunity to partner with OYA on community solar investments in New York State," said Brent Barringer, Partner, Managing Director LIHTC & Renewables at Monarch Private Capital. "Our shared commitment to renewable energy has allowed us to make meaningful progress towards creating a sustainable future. As we continue to expand our renewable energy division, we are proud to accelerate the Nation's energy transition alongside such dedicated and visionary partners."
The 2023 slate of projects being funded by the combined transactions are located throughout New York State and are expected to generate almost 100 MWdc of renewable energy per year once complete.
Subsequent pipeline projects that will form part of OYA's 2024 slate are currently in preconstruction or late stage permitting.