US, Canadian banks back construction financing for huge Pinal County solar project
A syndicate including U.S. and Canadian banks will provide financing for the large-scale 300 megawatt Box Canyon solar power project south of Phoenix in Pinal County.
Construction on the project near Florence began in December 2023, as a joint venture between West Palm Beach, Florida-based BrightNight and Toronto-based Cordelio Power LP, which is owned by the Canada Pension Plan Investment Board. The joint venture company is called BOCA BN LLC.
BOCA BN inked a long-term solar lease for the Box Canyon project in October 2023, covering 2,087 acres along State Route 79, north of Arizona Farms Road, according to Pinal County records. The company said it will make lease payments worth $65 million over the life of the project.
On May 13, the joint venture partners said that a $414 million construction credit facility had been finalized to back the project. Zions Bancorporation, based in Salt Lake City, Utah, served as the administrative agent and coordinating lead arranger for the financing. The joint lead arrangers include National Bank of Canada, Royal Bank of Canada and Canadian Imperial Bank of Commerce, in addition to Sumitomo Mitsui Trust Bank.
Separately, in January, BrightNight secured a $375 million credit facility from international backers for its U.S. projects, covering equipment deposits, letters of credit and project buildout. Coordinating lead arrangers and Green Loan coordinators for that credit facility included ING, Natixis CIB and SMBC, with British-based HSBC acting as a joint lead arranger and administrative agent.
In December 2022, BOCA BN entered into its 20-year power purchase agreement with the Southwest Public Power Agency (SPPA), the state agency that coordinates power resources distributed to 25 utilities and electric co-ops. BrightNight and Cordelio Power have signed on for a 2 gigawatt Arizona power portfolio, with Box Canyon representing the first project being built under that agreement. The deal represents the largest renewable energy procurement through SPPA to date.
“Along with our recent $375 million corporate credit facility with a strong bank group, this successful [construction] financing is a significant milestone in funding the buildout of our extensive 37 GW renewable power portfolio,” BrightNight CEO Martin Hermann said in a statement. “We deeply value our partnership with SPPA, Pinal County and the state of Arizona. This funding will bring much-needed clean power, hundreds of skilled jobs, economic development and energy security to this strategic and rapidly growing region.”
The Box Canyon project, slated to go into operation in the first half of 2025, is expected to produce enough electricity to power 77,000 Arizona homes and businesses annually. According to an economic impact study by Elliott Pollack and Associates, the project will generate $47 million in Pinal County economic impact during the construction period.
A portion of the project’s operating proceeds are expected to be used to send 50 students through the Central Arizona College’s electrician program over the next five years.