Nofar Energy Secures $310M Financing Package for Texas Solar Project
Nofar Energy secured a mandate letter with two international banks for up to $310 million in financing for its Lavender solar project in Texas, featuring a 15-year power agreement with a tech giant.
Nofar Energy, controlled by businessman Ofer Yanai, announced progress in its US operations by signing a mandate letter with two international banks for a project financing package totaling up to $310 million for the Lavender solar project in Texas. The banks will act as lead arrangers and joint underwriters, organizing a consortium of lenders subject to finalized negotiations and required conditions.
The Lavender project, located in Limestone County, Texas, is a solar facility with a planned capacity of approximately 225 MW DC, including a substation and transmission line. Currently under construction, commercial operation is expected in the fourth quarter of 2027. Estimated construction costs total about NIS 1 billion, with first-year representative revenues projected at approximately NIS 163 million and an anticipated annual EBITDA of around NIS 145 million, including US tax credit benefits.
A key feature of the project is a 15-year power purchase agreement (PPA) signed with a major tech giant for the full output of the facility. The financing framework includes a bridge loan for a tax equity partner of up to $170 million, a construction loan of up to $90 million to convert into long-term debt, and a letter of credit facility of up to $50 million, bearing interest based on SOFR plus a margin of 1.875% to 2%.
Ofer Yanai, founder and CEO of Nofar Energy, noted that the company has completed equity investments in the project and is securing bridge financing at a low margin, which will convert into tax equity and a long-term loan backed by a 15-year agreement with a high-rated tech giant.
