- US$145M Construction-to-term loan led by CIT, a division of First Citizens Bank & Trust Company
- US$71M Tax Equity Commitment secured with Monarch Private Capital
- Proceeds to be used to finance the construction of 15 New York State-based community solar development projects
Toronto, ON – March 1st, 2023 – OYA Renewables (“OYA”), a leading energy transition solutions platform, today announced that it has secured a total of US$216M in financial backing for the construction of a slate of 15 community solar development projects throughout New York State which make up part of its 2023 pipeline.
Of the US$216M in total financing, US$145M has been secured as a construction-to-term loan. CIT Power and Energy acted as lead on the loan, coordinating a syndicate of participating banks which was comprised of Amalgamated Bank, Siemens Financial Services Inc., Comerica Bank and Cadence Bank.
OYA secured an additional US$71M in project funding with Monarch Private Capital (MPC) in the form of a tax equity investment. The investment will see MPC participate in the funding of OYA’s slate of 2023 projects via their ESG-oriented impact funds. As a result, MPC’s investors will receive a federal tax credit through its funds in proportion to their level of ownership and see potential positive cash flow when the solar projects are up and running. Several of the projects located within low-income communities will qualify for additional tax credits of up to 20%, taking the total potential credits from 30% to as high as 50%.
“The level of financial backing we’ve secured via these commitments is another major milestone for OYA. Not only does it significantly increase our asset base, it also advances our transition from being a developer to an independent power producer,” said Manish Nayar, Chairman and founder of OYA Renewables. “These types of investments from highly-progressive banking partners are critical to the financing of renewable energy projects. Without them, we wouldn’t be the major force we are in the NY community solar market and the US energy transition could not have generated the incredible momentum it’s seeing now.”
“We appreciated the opportunity to collaborate with OYA in arranging financing for these important community solar projects, which enhance New York State’s renewable power generation capacity and support economic development and growth,” said Mike Lorusso, managing director and group head for CIT’s Power and Energy business, part of First Citizens Bank.
“We are grateful for the opportunity to partner with OYA on community solar investments in New York State,” said Brent Barringer, Partner, Managing Director LIHTC & Renewables at Monarch Private Capital. “Our shared commitment to renewable energy has allowed us to make meaningful progress towards creating a sustainable future. As we continue to expand our renewable energy division, we are proud to accelerate the Nation’s energy transition alongside such dedicated and visionary partners.”
The 2023 slate of projects being funded by the combined transactions are located throughout New York State and are expected to generate almost 100 MWdc of renewable energy per year once complete.
Subsequent pipeline projects that will form part of OYA’s 2024 slate are currently in preconstruction or late stage permitting.
Community solar programs allow businesses, public agencies, and households to access the benefits of solar power through subscribing to a portion of a large solar farm that’s ideally situated to generate electricity. By subscribing to the program, community members receive credits and savings of up to 10% on their electric bill every month from their portion of the solar that’s generated. Power produced from the community solar development is fed directly back to the electric grid and energy is delivered to customers through their regular electricity provider.
About OYA Renewables
OYA Renewables is leading the renewable energy transition with an exceptional track record as a top ten community solar developer. Founded in 2009, OYA has developed over 1,440 MWDC and has a pipeline of 9 GW of distributed and utility-scale solar projects across North America. Focused on the expansion of renewable energy and the integration of other clean technologies, the Company is committed to delivering long-term clean energy solutions to clients supporting their renewable energy objectives and providing access to clean energy for underserved communities. OYA has been certified by both the Canadian Aboriginal and Minority Supplier Council and the New York & New Jersey Minority Supplier Development Council as a diverse supplier. It has a highly engaged, seasoned and diverse workforce, with offices located in Toronto and Boston.
Monarch Private Capital
Monarch Private Capital manages ESG-oriented impact funds that positively impact communities by creating clean power, jobs and homes. The funds provide predictable returns through the generation of federal and state tax credits. The Company offers innovative tax credit equity investments for affordable housing, historic rehabilitations, renewable energy, film and other qualified projects. Monarch Private Capital has long-term relationships with institutional and individual investors, developers and lenders that participate in these types of federal and state programs. Headquartered in Atlanta, Monarch has offices and professionals located throughout the U.S.
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Founded in 1898 and headquartered in Raleigh, N.C., First Citizens is the largest family-controlled bank in the United States, providing a unique legacy of strength, stability and long-term thinking that has spanned generations. We offer an array of general banking services including a network of 500-plus branches in 22 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $100 billion in assets. First Citizens Bank, Member FDIC. Discover more at firstcitizens.com.