CIT Leads Construction Financing for Major New Texas Solar Project

Rhea-AI Summary

CIT, a division of First Citizens Bank, has arranged construction financing for the 147-megawatt solar project named Galloway 2 in Concho County, Texas. The project is developed by Avantus and is backed by Allianz Capital Partners, which holds a majority stake. The financing includes a long-term power purchase agreement with EDF Energy Services. This initiative reflects CIT's commitment to supporting renewable energy projects, building on the success of their previous Galloway 1 project completed in 2020.

Positive

• CIT successfully arranged financing for the 147-MW solar project Galloway 2, highlighting their expertise in renewable energy financing.
• The project is backed by reputable partners, including Allianz Capital Partners and Tenaska, contributing to its credibility.
• CIT's involvement reinforces their position as a leader in financing renewable energy projects.

Negative

• None.

NEW YORK, Nov. 3, 2022 /PRNewswire/ -- CIT, a division of First Citizens Bank, today announced that its Power and Energy business served as coordinating lead arranger of construction financing for a major new solar energy project in Texas.

Avantus (formerly 8minute) is the developer of the147-megawatt (MWdc) solar power facility now under construction in Concho County, Texas. The project, known as Galloway 2, is adjacent to the successful Galloway 1 solar project, which was built in 2020 with CIT-led construction financing.

Allianz Capital Partners, an experienced owner and operator of renewable power projects, has purchased a majority interest in the project and will co-own the project alongside Avantus. The project will be supported in part by a long-term purchase power agreement with EDF Energy Services. Tenaska led the tax equity investment for the project and Tenaska's power marketing affiliate, Tenaska Power Services Co., will serve as the qualified scheduling entity when the project comes online in 2023.

"We continue to see strong demand for solar projects that supply low-cost, clean renewable power to consumers and businesses," said Dr. Tom Buttgenbach, Founder and CEO of Avantus. "We greatly appreciated the expertise and continued partnership with CIT's Power and Energy team in leading the financing for this exciting new project."

"We were pleased to lead financing for this Galloway 2 solar project, just as we were proud to serve as coordinating lead arranger on the initial Galloway project financing in 2020," said Mike Lorusso, managing director and group head for CIT Power and Energy.

CIT's Power and Energy business leverages its deep industry knowledge and expertise to offer comprehensive financing solutions for renewable and conventional power generation. The unit manages a large, diverse portfolio that includes investments in all asset classes across the energy sector.

About CIT
CIT is a division of First Citizens Bank, the largest family-controlled bank in the United States, continuing a unique legacy of strength, stability and long-term thinking that has spanned generations. Parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $100 billion in assets. The company's commercial banking segment brings a wide array of best-in-class lending, leasing and banking services to middle-market companies and small businesses from coast to coast. First Citizens also operates a nationwide direct bank and a network of more than 550 branches in 22 states, many in high-growth markets. Industry specialists bring a depth of expertise that helps businesses and individuals meet their specific goals at every stage of their financial journey. Discover more at cit.com/firstcitizens.

MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com

 

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SOURCE CIT, a division of First Citizens Bank

FAQ

What is the Galloway 2 solar project financing led by CIT?

CIT arranged construction financing for the Galloway 2 solar project, a 147-megawatt facility in Concho County, Texas.

Who is developing the Galloway 2 solar project?

The Galloway 2 solar project is developed by Avantus, formerly known as 8minute.

What companies are involved in the Galloway 2 solar project?

The project involves CIT as the lead arranger, Avantus as the developer, Allianz Capital Partners as the majority stakeholder, and Tenaska for tax equity investment.

When is the Galloway 2 solar project expected to go online?

The Galloway 2 solar project is expected to be operational in 2023.

How does CIT's financing impact renewable energy projects?

CIT's financing supports the development of renewable energy projects, positioning them as a key player in the clean energy sector.