ST. LOUIS--(BUSINESS WIRE)--Jul. 31, 2015--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150731005536/en/
Source: U.S. Bank
U.S. Bank Corporate Communications
Shera Dalin, 314-335-3335
shera.dalin@usbank.com
@usbank_news