U.S. Bancorp Joins ORIX USA with First Renewable Energy Tax-Credit Syndication
March 16 2015 - 10:00AM
Business Wire
U.S. Bancorp (NYSE:USB) and ORIX USA Corp. announce the closing
of U.S. Bancorp’s first renewable energy syndication, which is
expected to enable SolarCity to install approximately 2,500 solar
power systems at homes and businesses in nine states.
U.S. Bancorp led the transaction, introducing of an
industry-leading product that will allow both first-time and
experienced investors to tap into the renewable-energy tax credit
market.
This agreement will help finance the installation of solar
arrays in Arizona, California, Colorado, Connecticut, Hawaii,
Massachusetts, Maryland, New Jersey and New York, with more to
come. The syndication is expected to finance more than $100 million
in solar projects.
The 2,500 systems installed by SolarCity are projected to
produce enough clean-source electricity in their first year of
operation to equal removing 4,250 cars from the roads each year.
The fund makes it possible for many home and business owners to
install solar panels with no upfront cost, and pay less for solar
electricity than they pay for utility power.
“This is a new phase of business development for U.S. Bancorp,”
said Zack Boyers, chairman and CEO of U.S. Bancorp Community
Development Corporation. “Entering into our first renewable energy
syndication agreement allows us to expand SolarCity’s ability to
install more energy-saving solar arrays on homes and businesses
across the nation that will, as a result, produce more jobs and
assist in the country’s economic recovery.”
The syndication is a gain on multiple fronts for U.S. Bancorp:
It boosts the capital in the solar market, increases use of clean
energy, and diversifies the bank’s ability to serve the needs of a
growing market as well as its products and services, Boyers
said.
The syndication deal marks ORIX’s entry into the
renewable-energy tax credit financing market.
“We welcome the opportunity to help consumers and businesses
reduce greenhouse gas emissions by becoming solar energy users,”
said Andrew Garvey, managing director and head of ORIX Municipal
Finance. “ORIX is a unique platform, and this transaction shows how
we can make our capital available in innovative ways to achieve the
financing needs of our clients.”
The installations will produce more than 350 construction and
installation jobs. They will also generate $76 million in economic
impact from salaries, equipment purchases, construction materials
and secondary spending by workers on local services and on solar
industry vendor supplies and services.
About ORIX Municipal FinanceORIX Municipal Finance makes
investments of approximately $10 million to $50 million in public,
semi-public and private entities. The company’s investment
portfolio includes transactions for a wide range of industries,
including health care, housing, education, energy and
transportation. ORIX Municipal Finance is a subsidiary of ORIX USA,
a Dallas-based financial services firm known for providing
innovative capital solutions that clients need to propel their
business to the next level. ORIX USA and its family of companies
have more than 1,400 employees with principal offices in Atlanta;
Chicago; Hartford, Conn.; Los Angeles; Minneapolis; New York; San
Francisco; Seattle; Washington, D.C.; Frankfurt, Germany; London;
and Paris. ORIX USA holds approximately $7 billion of assets and
manages an additional $30 billion, approximately. ORIX USA is a
wholly owned subsidiary of ORIX Corporation, a Tokyo-based,
publicly owned international financial services company with
operations in 36 countries and regions worldwide. ORIX Corporation
is listed on the Tokyo (8591) and New York Stock Exchanges (IX).
For more information on ORIX Municipal Finance, visit
www.orix.com.
About U.S. Bancorp Community Development CorporationWith
nearly $15.8 billion in managed assets as of Dec. 31, 2014, U.S.
Bancorp Community Development Corporation, a subsidiary of U.S.
Bank, provides innovative financing solutions for community
development projects across the country using state and federally
sponsored tax credit programs. USBCDC's commitments provide capital
investment to areas that need it the most and have contributed to
the creation of new jobs, the rehabilitation of historic buildings,
the construction of needed affordable and market-rate homes, the
development of renewable energy facilities, and the generation of
commercial economic activity in underserved communities. Visit
USBCDC on the web at www.usbank.com/cdc.
About U.S. BankMinneapolis-based U.S. Bancorp (NYSE:
USB), with $403 billion in assets as of Dec. 31, 2014, is the
parent company of U.S. Bank National Association, the fifth largest
commercial bank in the United States. The company operates 3,176
banking offices in 25 states and 5,022 ATMs and provides a
comprehensive line of banking, brokerage, insurance, investment,
mortgage, trust and payment services products to consumers,
businesses and institutions. Visit U.S. Bancorp on the web at
www.usbank.com.
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U.S. Bank Corporate CommunicationsShera Dalin,
314-335-3335shera.dalin@usbank.com@usbank_news
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