May 2, 2022 07:00 EDT
NEW YORK, May 2, 2022 (Newswire.com)
KOMIPO America, Inc., which is a U.S. subsidiary of Korea Midland Power Co., Ltd. (KOMIPO), one of the major power generation companies in Korea actively doing business globally, has struck a deal to finance a $166 million Concho Valley Solar photovoltaic power project in the United States via a construction loan and a long-term tax equity investment. The agreements were signed on February 25, 2022. Currently under construction, the project is contracted with high-quality, long-term offtakers EDF Energy Services, LLC and EDF Trading North America, LLC and is expected to reach commercial operation by September 2022. Concho Valley Solar is the second KOMIPO financing of a U.S. renewables asset after the successful financing of Elara Solar in 2021, also located in Texas.
CCA Capital, LLC served as the financial advisor to KOMIPO, providing support across capital formation and structuring. Royal Bank of Canada is providing the tax equity investment and Norddeutsche Landesbank Girozentrale and Cooperatieve Rabobank, U.A. are providing the construction loans and a separate back-leveraged facility that will support the project during operations.
KOMIPO President Kim Ho-bin said, “KOMIPO devotes itself to contributing to an energy paradigm shift by expanding the presence of renewable energy sources to be a more significant factor in power generation.”
KOMIPO America President Park Kyung Woo commented: “We are committed to expanding our renewables portfolio in the U.S. to continue to lead and promote the growth engine of the global renewable energy industry.”
White & Case LLP advised KOMIPO from the early stages of Concho Valley Solar and has provided legal guidance on the development, tax equity financing and construction financing of the project. Partner Raymond Azar said: “As part of the South Korean government’s push towards cleaner energy, this project marks a milestone for state-owned KOMIPO in its journey towards helping to reduce greenhouse gas emissions as the government takes steps towards fighting climate change.”
White & Case local partner Sarah Park commented, “It has been a privilege to support KOMIPO and its subsidiaries in their development and financing of U.S. renewable assets. As a leading U.S. renewables energy law firm with a full-service projects team in Seoul, we remain committed to assisting Korean sponsors and financial institutions’ expansion into the U.S. energy market.”
KOMIPO operates KOMIPO Energy Solution America, LLC, an entity designed to spearhead long-term renewable energy projects in the United States in which the Korean power company has set up development, construction and operation as its core capabilities. KOMIPO has built future growth engines in the renewable energy sector by securing around 1GW renewable energy assets in foreign countries. The Korean power company plans to expand its overseas photovoltaic power, wind power and other renewal energy segments in advanced countries such as the United States, Europe and Australia.
Source: KOMIPO America, Inc.