Arevon Energy Secures $352 mn Financing for Posey Solar Project in Indiana

By Editor


Arevon Energy, a renewable energy developer, has secured a substantial financing package worth $352 million for its Posey Solar Project in Posey County, Indiana. The project, set to deliver 228 megawatts (MWdc) of clean energy, is anticipated to commence operations in the first quarter of 2025, promising to power over 25,000 homes annually.

The financial close for the Posey Solar Project encompassed a $317 million construction loan alongside a $35 million letter of credit facility. Spearheading this financing endeavor, Canadian Imperial Bank of Commerce (CIBC) played a pivotal role, serving as the Coordinating Lead Arranger, Green Loan Coordinator, Bookrunner, and Administrative Agent.

Additionally, Commonwealth Bank of Australia contributed as the Coordinating Lead Arranger and Letter of Credit Issuer. Joint Lead Arrangers including Banco Bilbao Vizcaya Argentaria (BBVA), Bayerische Landesbank (BLB), Lloyds Bank, and PNC Bank, along with The Bank of New York Mellon acting as Collateral and Depositary Agent, bolstered the financial backbone of the project.

Upon completion of construction, Southern Indiana Gas and Electric Company will assume ownership of the Posey Solar Project through a build-transfer agreement with Arevon. Notably, Bechtel has been entrusted with the project’s engineering, procurement, and construction (EPC) responsibilities.

Kevin Smith, the CEO of Arevon, emphasized the significance of the Posey Solar Project in advancing sustainability goals and fortifying local economies. He credited the collaborative efforts of longstanding financial partners for achieving the financial close, underscoring the achievement as a milestone for the company.

Expressing pride in their involvement, Ines Serrao, MD, and Head of US Renewables at CIBC, reiterated the bank’s commitment to supporting Arevon and promoting sustainable energy initiatives in the United States.

Legal representation for Arevon included Amis, Patel & Brewer, LLP as Sponsor Counsel, Milbank LLP as Lender Counsel, Husch Blackwell as Sponsor Local Counsel, and Ice Miller as Lender Local Counsel.

In addition to the Posey Solar Project, Arevon has recently sealed financial deals for three other solar and energy storage projects, accumulating a total of over $2.3 billion in investments. These projects include the Vikings Solar-plus-Storage project, the Condor Energy Storage Project, and the Eland 2 Solar-plus-Storage Project, showcasing the company’s commitment to advancing renewable energy infrastructure.

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