SunEdison closes additional $117 million solar fund


SunEdison on Tuesday announced it had closed its second fund for distributed generation projects in the United States with Barclays and Citi.

The lease pass-through fund is valued at $117 million and follows on the Barclays and Citi fund closed earlier this year, bringing the aggregate value of funds closed this year with Barclays and Citi for SunEdison and TerraForm Power’s distributed generation projects to $290 million.

The fund will provide financing for a portfolio of distributed generation projects in 12 states across the West Coast, mid-Atlantic, New England, Hawaii and Puerto Rico. The projects are expected to be operational in the fourth quarter of 2014 through the first half of 2015. TerraForm Power has agreed to buy the projects once they are completed.

"The creation of this second fund, so soon after the first, speaks to the success of our relationship with Barclays and Citi," said Ryan Bennett, vice president of project finance, North America at SunEdison. "This latest round continues to support our business model of developing high quality commercial and industrial projects with efficient capital provided by great partners. This is a highly scalable model that allows us to make life easy for our customers. As a result, business is booming."

TerraForm Power President and CEO Carlos Domenech added, "The new fund with Barclays and Citi allows TerraForm Power to acquire a portfolio of highly attractive operational projects that are in geographically diverse locations," adding that the partnership had allowed the company to continue to grow rapidly and build strong momentum.

Marshal Salant, head of Alternative Energy Finance at Citi, said the second SunEdison fund further developed "the market for corporate, industrial and municipal medium-scale projects, and complements Citi’s efforts to help clients finance large utility-scale and small-scale residential rooftop solar power projects."

Echoing the sentiment, Barclays Managing Director Rama Subramaniam called the transactions a "a real win-win for SunEdison and Barclays."