The purpose of the revolver is to aid SunEdisons deployment of photovoltaic (PV) power plants in the U.S. The company will use the money to construct PV projects at client (host) locations. Upon completion, the solar hosts will reportedly buy the energy produced at prices at or below retail rates.
SunEdison has said that while the construction revolver is currently sized at USD$50 million, it is expected to "significantly" expand over the life of the deal, with the addition of more lenders. Projects will range in size from small commercial to utility scale.
"We are pleased to provide financing that enhances SunEdison’s ability to execute on its significant pipeline of solar projects," said Ron Klein, a managing director with Rabobank’s Renewable Energy Group. "This type of innovative, multi-project, non-recourse facility is possible because of SunEdison’s successful track record and expertise. Additionally, it illustrates the maturity of the renewables industry and specifically the solar sector." ?
Thomas Emmons, head of Rabobank’s Renewable Energy Group in New York added: "Over the past couple of years, financial institutions have become more comfortable with solar photovoltaic construction risk, so we expect a number of parties to be interested in joining the facility."
* A revolver is an agreement between a bank and a company or individual to provide a certain amount in loans. The borrower is not obliged to take out the money at any particular time, but can rather dip in and out of it over a period of several years.