Polaris Renewable Energy has entered into an equity capital contribution agreement with Punta Lima Wind Farm, a wholly owned subsidiary of Santander Bank.

The 26 MW onshore wind farm is located in the Municipality of Naguabo. It was re-constructed and recommissioned by Santander and has signed a 20-year PPA with Puerto Rico Electric Power Authority.

The transaction is being completed using a tax-equity structure which will result in Polaris becoming the manager and operator of the project with a controlling equity interest and Santander retaining a tax equity interest. 

Polaris’ $20 million equity contribution will be subject to customary closing adjustments including working capital changes. The company intends to use cash on hand to fund the equity contribution. Santander Corporate & Investment Banking acted as sole financial advisor to Santander Bank N.A.

“This strategic acquisition further deploys Polaris capital into another jurisdiction while adding wind into our generation mix,” says Marc Murnaghan, president and CEO of Polaris. 

“We believe that this transaction provides attractive near-term returns to our shareholders as well as enhancing our growth opportunities significantly. This includes the use of energy storage to provide competitively priced energy and grid stabilization services as well as exploring further strategic opportunities on the island given its stated future energy requirements.”