ST. LOUIS--(BUSINESS WIRE)--U.S. Bancorp (NYSE: USB) and Zions Bank (NYSE: ZION) announce a renewable-energy tax-equity syndication agreement that will provide financing for the Red Horse 2 wind and solar project near Tucson, Arizona, owned by an affiliate of D. E. Shaw Renewable Investments L.L.C.
U.S. Bancorp launched its new renewable-energy investment syndication earlier this year, allowing first-time and experienced investors to participate in the renewable-energy tax-equity market. With this agreement, Zions Bank is co-investing with U.S. Bancorp and benefitting from U.S. Bancorp’s underwriting, structuring, and ongoing asset management.
The investment will help finance the installation of the 71-megawatt project about 65 miles east of Tucson. The more than $200 million project is expected to generate enough electricity to power 13,500 homes in the service territory of Tucson Electric Power Co. The utility has a 20-year contract to purchase power from the project, which will reduce carbon dioxide emissions by nearly 5 million metric tons over 30 years, or the equivalent of removing more than 1 million cars from the road.
“Given our focus on sustainable energy production and Zions Bank’s interest in ensuring clean electricity sources for its customers in Arizona, this partnership was a success on all fronts,” said Chris Roetheli, vice president of U.S. Bancorp Community Development Corporation, the subsidiary of U.S. Bancorp that is managing the transaction. “We welcome the opportunity to work with other companies that want to invest in renewable-energy tax equity.”
The syndication agreement demonstrates Zions’ continued support for sustainable energy financing.
“Zions is committed to helping consumers and businesses realize the economic benefits of sustainable energy by becoming solar and wind energy users,” said Craig Robb, managing director of Zions Energy Link. “This investment demonstrates our commitment to increasing the capacity of renewable energy companies to provide more of these systems.”
U.S. Bancorp anticipates that Red Horse 2 will produce more than 800 construction and installation jobs. The bank also expects that the project will generate more than $110 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. Each year after construction, the project is anticipated to produce $1.6 million in economic impact.
Since U.S. Bancorp launched its renewable syndications product in the last year, it has helped finance more than $450 million in renewable energy projects across the nation, demonstrating the bank’s commitment to sustainability.
About Zions Bancorporation
Zions Bancorporation (NASDAQ: ZION) is one of the nation’s premier financial services companies, consisting of a collection of great banks in select Western markets. Zions operates its banking businesses under local management teams and community identities in 11 Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Company is a national leader in Small Business Administration lending and public finance advisory services, and received 24 “Excellence” awards by Greenwich Associates for the 2014 survey. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. More information is available at zionsbancorp.com.
About U.S. Bancorp Community Development Corporation
With nearly $15.8 billion in managed assets as of June 30, 2015, 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. Bank
Minneapolis-based U.S. Bancorp (NYSE: USB), with $419 billion in assets as of June 30, 2015, 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.