SunPower signs loan agreements to finance 44-MW solar power plants in Italy

SAN JOSE, USA: SunPower Corp. has signed loan agreements associated with its previously announced solar bonds with BNP Paribas and Societe Generale, both located in Milan, Italy.

As part of this financing, a SunPower subsidiary has borrowed euro 195.2 million to finance the final two phases of the Montalto di Castro solar park, which will total 44 megawatts (MW). The solar bonds are expected to be funded in December of this year. SunPower has completed construction and will provide operations and maintenance of these power plants, and intends to complete its equity sale before the end of this year.

The Montalto di Castro solar park, developed by SunPower, is located in the Lazio region of Italy near Rome, where the 20-MW first phase was connected to the grid in November 2009, several weeks ahead of schedule. The 8-MW second phase was commissioned earlier this fall, and the third and fourth phases, totaling the 44 MW, brings the total scale of the project to 72 MW.

"This financing agreement puts us one step closer toward accomplishing the industry's first-of-its-kind solar bond," said Dennis Arriola, SunPower CFO. "We are on track to close the debt financing and sell the equity in these parks, all before the end of this year, consistent with our fourth-quarter revenue and earnings guidance."