US – Clenera closes Snowflake PF

About this update from Enlight Corporation

By Cristiana SandevaIsraeli renewables developer Enlight's US-based subsidiary Clenera has closed US$1.43bn of construction financing for the US$1.6bn 600MW solar plus 1.9GWh BESS Snowflake A project in Arizona via Wells Fargo, BNP Paribas, Natixis, NordLB, Credit Agricole and MUFG. The deal includes a mini-perm, which is set to convert to a US$811m term loan on the project's commercial operation date and a US$619m equity bridge loan, expected to be repaid with tax equity proceeds. The term loan is structured with an amortisation tenor of 25 years for the solar component and 20 years for the energy storage component and is to be fully repaid five years from the project’s commercial operation date. The loans are subject to an all-in interest rate of 5.4%–5.8% and Enlight is the parent guarantor for certain obligations as defined under the financing agreements.The project is under construction, which has been backed by a US$350m mini-perm mezzanine facility that Enlight signed with Bank Leumi in August for Snowflake A, as well as the Quail Ranch and Roadrunner projects. The project's contribution from investment tax credits is expected to be US$777m–$817m, revenues are expected to be US$125m–$131m in the first year of full operations and Ebitda is expected to be US$101m–$106m. All three projected figures have increased since Enlight's report in November 2024, which forecast US$625m–$657m in tax credit contributions, US$115m–$125m in first-year revenues and US$95–$105m in Ebitda on a first full-year basis. Enlight expects to obtain a tax equity investment in 2026 and expects the project to be eligible for the 10% energy community bonus tax credit for the solar component and a 10% domestic content bonus tax credit for the storage component. The project's generation and storage output is backed by a 20-year busbar solar and energy storage purchase agreement with Arizona Public Service. A second phase of Snowflake 1 is being developed for an additional 650MW of solar capacity and 2.1GWh of energy storage.

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