CIT Group Inc. (NYSE: CIT) announced its Power and Energy business served as coordinating lead arranger for $140 million in debt financing to support construction of the Lotus Solar Farm, a 67-megawatt solar project in Madera, California. Concurrent with financial close, the project was sold by 8minute Solar Energy to Allianz Global Investors.
When completed, the Lotus Solar Farm, which is now under construction, will produce enough energy for more than 12,000 local homes and businesses and will reduce carbon emissions by approximately 48,000 metric tons each year.
CIT led the financing for the Lotus project along with NORD/LB, which served as co-lead and joint lead arranger. In addition to leveraging its financing and structuring expertise, CIT is also providing a comprehensive package of capital markets services and treasury management solutions.
Market research firm Inframation, an Acuris company, has identified CIT as one of the top lenders for renewable energy projects nationwide.
"We were pleased to support AllianzGI and 8minute in advancing the Lotus solar project while adding to our portfolio of clean energy financings across the U.S.," said Mike Lorusso, managing director and group head for CIT's Power and Energy unit.
Allianz Global Investors is a leading active asset manager with over 790 investment professionals in 25 offices worldwide and managing $619 billion in assets for individuals, families and institutions.
8minute Solar Energy is based in Los Angeles and is the largest private solar and storage developer in the United States. 8minute has over 14 gigawatts of solar and storage under development in California, the Southwest, Texas, and the Southeast while also having brought more than 2 gigawatts of solar power plants into operation.
"As California continues to lead the transition to 100% clean energy, projects such as the Lotus Solar Farm will be instrumental in providing dependable and affordable solar power," said Tom Buttgenbach, president and CEO of 8minute Solar Energy. "We greatly appreciated the agility and expertise of CIT's Power and Energy team in leading the financing for this exciting new project."
Power and Energy, part of CIT's Commercial Finance division, leverages its deep industry knowledge and expertise to offer comprehensive financing solutions for renewable and conventional power generation. The unit manages a large, diverse portfolio that includes investments in all asset classes across the energy sector.