ISRAEL —CPV Renewable Power LLC, an indirect subsidiary of OPC Energy Ltd., has completed a $430 million credit facility with Bank Leumi. The package features a $250 million term loan maturing in December 2031 with a floating interest rate based on SOFR plus a margin between 1.8% and 2.4%. Additionally, the agreement provides $180 million in guarantee and letter-of-credit facilities, carrying commission rates ranging from 1% to 2%, to replace existing obligations.
CPV Renewable Power LLC develops, constructs, and operates utility-scale wind and solar energy projects across North America. Parent firm OPC Energy Ltd. is an Israel-based power generation company operating in domestic natural gas and renewable markets, as well as the U.S. power sector through CPV Group LP.
The refinancing agreement reflects growing institutional bank appetite for utility-scale clean power infrastructure. By extending debt maturities and lowering borrowing costs relative to construction-era risk profiles, renewable energy operators can significantly lower their weighted average cost of capital. Replacing existing high-cost project-level debt with a consolidated bank facility improves operating cash flows and provides enhanced financial flexibility.
Securing long-term committed credit lines remains vital for independent power producers facing high capital expenditure requirements and volatile power markets. Facilities dedicated to letters of credit and performance guarantees are particularly crucial for satisfying grid interconnection mandates, power purchase agreement collateral requirements, and equipment procurement obligations without tying up operational cash reserves.
For institutional lenders, providing term debt backed by operating clean power assets offers stable, risk-adjusted returns aligned with broader ESG mandate integration. This transaction highlights the continuing availability of commercial bank liquidity for experienced energy sponsors seeking debt optimization strategies in the utility-scale power sector.
