US-based utility-scale renewable energy assets developer Vesper Energy has secured $590m in a debt financing deal for the development of its 600MW Hornet Solar project in Texas.

A consortium comprising MUFG Bank, Nord/LB, Santander, BayernLB and Associated Bank extended the funding, which includes a construction-to-term loan and letter of credit facility.

The financing also leverages the transfer of production tax credits (PTC), supported by provisions under the Inflation Reduction Act.

Advantage Capital arranged a purchase commitment to monetise more than $500m of PTCs, which will be leveraged by the loan facility.

MUFG director Matt Curtin said: “MUFG is pleased to jointly lead the debt financing for Vesper Energy’s largest solar project to date. This partnership reflects our confidence in the Vesper team and its ability to successfully deliver ambitious, clean energy solutions.”

Nord/LB managing director and originations head Nicolai Dillow said: “Financing critically important energy transition projects such as Hornet Solar reflects Nord/LB’s commitment to supporting Vesper Energy in the growing and maturing renewable energy sector.”

Advantage Capital vice president Michael Sponseller said: “This transaction demonstrates Advantage Capital’s ability to structure creative financing solutions for a dynamic and growing renewable energy market.

“We’re thrilled to have achieved this outcome with Vesper Energy and look forward to expanding our partnership across many projects to come.”

The Hornet Solar project, with a nameplate capacity of 600MWac and 745MWdc, is said to be one of the largest single-phase solar projects in the US.

The project, currently being constructed by Blattner Energy, will feature bifacial photovoltaic modules on a single-axis tracking system.

Covering more than six square miles (10km2) in Swisher County, Texas, the Hornet Solar project will generate 600MWac, which is adequate to power 160,000 homes each year.

The solar project interconnects to Oncor Electric’s transmission system in the Electric Reliability Council of Texas (ERCOT).

The power generated by the project is contracted to four off-take partners through individual Power Purchase Agreements (PPAs).

Vesper Energy chief financial officer Robert Scheuermann said: “Closing project financing and a long-term purchase agreement for the PTCs on a large project in west Texas is complex.

“We are proud to invest in Hornet Solar alongside top-tier lenders and investors. This closing is a testament to the value Vesper Energy generated in the asset.”