CIT funds solar construction

CIT Group’s energy finance business has served as sole lead arranger and administrative agent for a $59.8 million construction and tax equity bridge loan and back-levered term loan facility to GCL New Energy, a US solar development unit of GCL New Energy Holdings.

The financing will support an 84.5 megawatt portfolio of eight solar projects that are nearing completion of construction in Wilson County, North Carolina.

The North Carolina solar farms, which cover approximately 430 acres of land, are fully contracted under 10-year agreements with North Carolina Eastern Municipal Power Agency.

The projects, three of which are expected to be producing solar power for the city of Wilson by March 31, will sell electricity at fixed rates. The projects represent the first of several US solar investments recently made by the China-based company.

Jimmy Chuang, chief structured finance officer of GCL New Energy, said: “The projects will provide clean and cost-efficient green energy to Wilson County residents and businesses.

“We are very excited to expand our energy portfolio in the US and North Carolina and are glad to have partnered on this project with CIT which provided unique back-leverage solutions to this complex lease financing structure.”

Mike Lorusso, managing director of CIT’s Energy Financing business, said: “We are pleased to offer innovative financing solutions to support GCL’s growing presence in the US renewables sector. CIT continues to be a leader in sourcing and providing capital to this growing industry.”