The biggest clean energy project in US history has closed $11 billion of financing and begun full construction of SunZia Transmission and SunZia Wind projects, which will create 550 miles of ±525 kV high-voltage direct current (HVDC) transmission line between central New Mexico and south-central Arizona. The transmission line will have capacity to transport 3,000 MW of clean, reliable, and affordable electricity across Western states. The 3,515 MW SunZia Wind facility – the largest wind project in the Western Hemisphere – is now being constructed across Torrance, Lincoln, and San Miguel Counties in New Mexico.
Pattern Energy is one of the world’s largest privately-owned developers and operators of wind, solar, transmission, and energy storage projects. Its operational portfolio includes 30 renewable energy facilities that use proven technology with an operating capacity of nearly 6,000 MW across North America. The company predicts that these two massive projects will bring clean power to three million Americans and over $20 billion in expected economic impacts.
The financing includes an integrated construction loan and letter of credit facility, two separate term facilities, an operating phase letter of credit facility, an innovative tax equity term loan facility and a holding company loan facility.
“Our hope is this successful financing of the largest clean energy infrastructure project in American history serves as an example for other ambitious renewable infrastructure initiatives that are needed to accelerate our transition to a carbon free future,” said Hunter Armistead, CEO of Pattern Energy.
“We are very grateful to all of our financial partners who are backing SunZia as part of this record-setting project financing. Construction is well underway on this historic project that will deliver clean power with a generation profile that complements abundant solar generation available across the Western United States.”
For the approximately $8.8 billion construction and term facilities, BNP Paribas, Crédit Agricole Corporate and Investment Bank, CoBank, ACB; Desjardins Group, Export Development Canada, ING Capital LLC, Intesa Sanpaolo S.p.A., New York Branch, KFW IPEX-Bank, MUFG Bank, Ltd., National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, Sumitomo Mitsui Banking Corporation and Wells Fargo Securities, LLC acted as Initial Coordinating Lead Arrangers and Joint Bookrunners. Banco Bilbao Vizcaya Argentaria, The Bank of Nova Scotia and Sumitomo Mitsui Trust Bank, Limited, New York Branch acted as Coordinating Lead Arrangers.
BNP Paribas, Crédit Agricole Corporate and Investment Bank, MUFG Bank, Ltd., Societe Generale, and Sumitomo Mitsui Banking Corporation are acting as co-syndication agents. MUFG Bank, Ltd. is acting as Administrative Agent and Deutsche Bank Trust and Agency Services is acting as collateral and deposit agent for the transaction.
The finance is structured as green loan facilities in alignment with the Green Loan Principles and BNP Paribas, Crédit Agricole Corporate and Investment Bank, Desjardins Group, ING Capital LLC, Intesa Sanpaolo S.p.A, New York Branch, National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, and Sumitomo Mitsui Banking Corporation, and Wells Fargo Securities, LLC acted as Co-Green Loan Structuring Agents.
A $2.25 billion tax equity term loan facility was provided by Banco Santander, S.A, New York Branch and Santander Bank N.A. (SBNA) as Joint Coordinating Lead Arrangers. Bank of America, GE Vernova’s Financial Services business, Natixis Corporate & Investment Banking and Royal Bank of Canada acted as Joint Lead Arrangers. SBNA acted as administrative agent. The facility monetizes project tax credit attributes.
Nomura Securities International, Inc., and CPPIB Credit Investments III Inc., a subsidiary of Canada Pension Plan Investment Board (CPP Investments) has participated in the final piece of the financing, a holding company facility to support initial equity capital for the project.
SunZia Wind and Transmission will employ more than 2,000 workers on-site during construction, including heavy equipment operators, electricians, laborers, and others. The project will also utilize the expertise of several industry-leading suppliers and contractors. The EPC Contractor of the transmission line is Quanta Infrastructure Services Group and the HVDC supplier is Hitachi Energy. The EPC contractor for the wind project is Blattner Energy, a Quanta affiliated company. The wind turbines are being supplied by GE Vernova and Vestas. The New Mexico Renewable Energy Transmission Authority (RETA) is a partner in the development of the transmission project in New Mexico.
“SunZia represents an important step forward in the global transition to renewable energy and we are pleased to support Pattern as it works to bring this project toward completion,” said Bill Rogers, Managing Director, Global Head of Sustainable Energies, CPP Investments.
