Panda Sherman Power, an affiliate of US-based Panda Power Funds, has secured financing for its proposed 758MW natural gas-fuelled, combined-cycle power plant in the city of Sherman in Texas, US.
Construction on the 204-acre site has already begun and commercial operations are likely to start by the end of 2014.
Senior debt financing for the power plant was arranged by Credit Suisse and Goldman Sachs, while Ares Capital served as documentation agent.
Panda Sherman said it is supplying equity for the gas-fired project along with several other institutional co-investors.
Panda Power Funds president and senior partner, Todd W Carter, said the tough financing market seen two months ago is starting to show positive signs of movement.
"While it was still a long, hard march to closing, calls were coming in to us from many different quarters to be a part of this project," Carter added.
The firm has selected a consortium of Bechtel and Siemens Energy to construct the plant located at Progress Industrial Park 3 in South Sherman.
The generating station, which will utilise combustion turbine and emissions-control technology, is expected to power about 750,000 homes in the North Texas area.
Sherman Mayor Bill Magers said that the new power plant will provide necessary electricity required to locate future commercial enterprises in the North Texas region.
"Companies looking to relocate to our area must know they’ll have a dependable supply of electricity to power their factories and places of business. It’s really quite simple – power equals growth," Magers said.
Commenting on the new generating facility, Sherman Economic Development Corporation president Scott Connell said, "With construction comes expanded payrolls, added revenues for subcontractors, suppliers, service providers, hotels, restaurants, retailers and many other businesses."
Image: Credit Suisse headquarters in Zurich. Credit: courtesy of Giorgia Xenakis.