Energix Closes USD 520 Mn Financing and Tax Equity Deal to Fund New Solar Projects

Energix Renewables has announced the successful closing of two project financing transactions with Santander Corporate & Investment Banking (Santander CIB), as the sole underwriter and structuring bank of a construction financing and term loan which includes a Tax Equity bridge loan, and Morgan Stanley Renewables Inc. (Morgan Stanley), as a tax equity investor, in connection with 6 utility scale solar projects located in Virginia and Pennsylvania totaling $520 million dollars in the aggregate.

The financing for each transaction is expected to involve a consortium of lenders led by Santander CIB providing a construction and term loan facility, and Morgan Stanley acting as a tax equity investor.

The total construction and term-loan amount committed by the lenders is $260 million, and the total tax equity commitment is $260 million; provided, however, the total tax equity contribution could be higher based on the project companies' ITC (investment tax credit) eligibility.

The funds acquired through these transactions will be used to further Energix's commitment to bring clean, reliable, and affordable energy to local communities through the addition of six utility-scale solar projects in Virginia and Pennsylvania.

Entering into financial partnerships with Morgan Stanley and Santander CIB, both leading global financial services firms, allows Energix to support US domestic energy independence and bring its total investment in American energy infrastructure to close to a $1 billion.

The projects funded by this transaction will provide 416MWdc of domestically produced power to local grids and adds a significant boost to the local economies through increased tax revenues and the creation of hundreds of well-paying construction jobs.

Utility-scale solar projects give communities access to affordable energy production, as in the case of Adams Solar project within the portfolio of this transaction, which will provide 22 percent of the City of Philadelphia's municipal electricity use.

"Energix is delighted to further strengthen its longstanding partnership with Morgan Stanley. This continued collaboration reinforces Energix's position as a leading independent power producer in the US market," said Asa (Asi) Levinger, CEO, Energix – Renewables Energies, Ltd.

The latest transaction marks the third tax equity deal Energix has closed with Morgan Stanley. The prior two deals were closed in 2020 and 2021 and were associated with eight projects in Virginia totaling approximately 200MWdc.

"We are pleased to deepen our relationship with Energix by investing in a portfolio of renewable energy assets and continue supporting the decarbonization of the U.S. grid," said Jorge Iragorri, Managing Director and Head of Renewable Energy Investments at Morgan Stanley.

"Energix is thrilled to announce this new collaboration with Santander CIB. This partnership opens up exciting avenues for Energix to expand its footprint and harness Santander's extensive network and resources," said Itamar Sarussi, Country Manager, Energix US. "We appreciate the trust and confidence that major banks have placed in the company. Through partnerships like this, Energix can develop utility scale solar projects and to produce clean electricity for the benefit of the communities in Virginia and Pennsylvania."