A subsidiary of the Ashtrom Group, a global independent power producer and developer of renewable energy, today announced the signing of a green financing agreement worth about $270 million with a group of five banks: BHI, the American branch of the Bank Hapoalim Group, Bayerische Landesbank, ING Capital, Rabobank, and Société Générale.
Additionally, Ashtrom Renewable Energy signed a Tax Credit Transfer Agreement (TCTA) to sell a highly rated (Aa3 Moody’s) U.S. institutional entity the production tax credit (PTC) that the project will generate over a ten-year period.
The PTC is worth almost $300 million in total. One of the first solar projects in the United States to finish a Tax Credit Transfer Agreement for solar PTCs under the new Inflation Reduction Act (IRA) and finish financing under a project finance framework is the Tierra Bonita project.
“The financial closing of the Tierra Bonita project marks a significant milestone for Ashtrom Renewable Energy, demonstrating confidence in our strong capabilities to execute the development, planning, financing, and construction of our first large-scale solar project in the U.S., with a total investment of approximately $435 million,” said Yitsik Mermelstein, CEO at Ashtrom Renewable Energy.
We have also engaged into a ground-breaking agreement to sell the project tax credits to a prestigious institutional company with a U.S. base for an estimated $300 million. This follows our PPA agreement from the previous year to sell roughly 60% of the project’s electricity to CPS Energy, the city of San Antonio’s municipal utility, for a 20-year period (Aa2 Moody’s).
The Tierra Bonita project, with a planned capacity of 400MWdc (306 MWac), is situated on a 2,400 acre property in Pecos County, Texas. It is currently under development, and it won’t be open for business until the fourth quarter of 2024. The project is anticipated to reduce CO2 emissions by about 500,000 tonnes year, which will have a good influence on the environment.
Due to this, the project’s funding was set up as a Green Loan in accordance with the Green Loan Principles, with ING serving as the Green Loan Structuring Agent.
The Tierra Bonita project was created by Austin, Texas-based Ashtrom Renewable Energy and its regional partner, OnPeak Power, LLC, a market-leading privately held renewable energy firm. The development of renewable energy projects and asset optimisation are OnPeak’s areas of expertise. The project’s EPC contractor is Mortenson.
Delivering renewable energy on a large scale is Ashtrom Renewable Energy. We construct world-class renewable energy projects both domestically and abroad. The company is an independent power producer (IPP) led by a group of energy specialists with decades of experience in solar and wind siting, development, construction, financing, and operation. It takes a hands-on, risk-informed strategy that emphasises strategic and cost-effective execution. The Ashtrom Group’s (TASE: ASHG) financial stability and culture of excellence are leveraged by Ashtrom Renewable Energy.
a renowned infrastructure, building, and real estate development corporation with a successful 60-year history. Ashtrom Renewable Energy is well-positioned to build up its development and investment activities in the U.S. market quickly for the long term with a development pipeline of 1.8 GWdc in the U.S. and 2.5 GWdc globally. Find out more information about Ashtrom Renewable Energy at
Leading Israeli construction and real estate firm Ashtrom trades its stock on Tel Aviv 35. The organisation works in a number of industries: Residential and infrastructure contract constructions, among other things, are a part of Israel’s construction and infrastructure contracting industry; Franchise: taking part in bidding and carrying out planning, management, and financial tasks for significant infrastructure and housing projects; fostering entrepreneurship in Israel through Ashdar, a division that is a pioneer and one of the industry’s oldest businesses; Through its Israeli affiliate Ashtrom Properties, an investment and commercial real estate company,
holding and operating commercial centres, office buildings, job centres, industrial structures, and more in Germany and England; industries, particularly those that produce, market, and sell raw materials to the construction sector as well as import and market finishing products for that sector; Ashtrom International carries out construction and infrastructure contracts internationally as well as residential real estate development in the United States and Europe; Investing in initiatives relating to renewable energy, including storage, wind, and solar, both in Israel and around the world. Rami Nussbaum serves as the Ashtrom Group’s chairman, and Gil Gueron serves as the organization’s CEO.