Milbank represented Standard Chartered and other lenders in the successful closing of a US$$235 million non-recourse senior secured term green loan facility to Texas-based solar panel manufacturer Trina Solar.

The funding, with maturity in six years, will support the development, construction and operation of a 1.35 million square foot solar photovoltaic manufacturing plant in Wilmer, Texas.

With the capacity to produce 5.0 gigawatts per year, the new manufacturing plant's seven solar photovoltaic panel assembly lines will cater to utility-scale, commercial and industrial, and residential-scale solar needs by offering three types of solar modules.

The Trina Solar deal is one of the first solar panel manufacturing facilities to be financed on a non-recourse basis in the United States.

“It was exciting to have advised Standard Chartered on this innovative new green project financing for Trina Solar, which will help improve the renewable energy mix and support the transition to cleaner energy in the United States,” says Milbank global project, energy and infrastructure finance partner Sean O’Neill.

“This project is a great example of the groundswell of investment in the domestic US clean energy supply chain and the impact of the Inflation Reduction Act and the new 45X tax credit,” adds global project, energy and infrastructure finance partner Mike Duff.

The Inflation Reduction Act of 2022 seeks to promote investments in domestic energy production and clean energy. The federal law provides for a 45x tax credit guidance on the supply chain of critical components used in advanced energy production.