Octopus has made the second solar acquisition in as many weeks. Credit: Zbynek Burival on Unsplash.

US-based solar photovoltaic (PV) and storage project developer 8minute Solar Energy (8minute) has secured a $225m Letter of Credit (LC) facility to support its 18GW pipeline of solar and energy storage projects.

The LC was secured from a consortium of five banks, led by CIT as a sole coordinating lead arranger with partners KeyBank, HSBC, Rabobank and Nomura Holdings.

8minute president and CEO Dr Tom Buttgenbach said: “In this challenging time, 8minute is pleased to continue to receive increasing investment and financing to help us deliver on our rapidly expanding pipeline

“We are glad to continue working with core financial partners who share our commitment to unlocking an affordable and clean energy future.”

The company said in a statement that it will be using the LC for its power purchase agreements (PPAs) and interconnection agreements for its projects in California, Texas and the south-western US.

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The new $225m LC facility will be replacing 8minute’s existing facility with Rabobank, which it secured in 2016.

The new LC is said to be the third deal closed by 8minute with CIT in the last 12 months.

CIT Power and Energy Business managing director and group head Mike Lorusso said: “We are delighted to expand our relationship with 8minute by arranging this first-of-a-kind financing facility.

“8minute has a superior track record on project execution and rigorous approach to project financing, and we look forward to continuing to support their financing needs.”

Latham & Watkins represented 8minute and Norton Rose Fulbright represented the lenders for this deal.