As investors get more comfortable with the idea of dumping money into renewable energy projects, Warren Buffett’s MidAmerican Energy prepares for its second utility-scale solar farm financed through a bond offering.
Earlier this week, MidAmerican Energy Holdings Co. said it could complete a $700 million bond offering before the end of June to finance the Antelope Valley solar far in Southern California—a $2.74 billion project. MidAmerican acquired Antelope in January this year and construction began in late March. MidAmerican has already secured a 20-year agreement with Southern Edison California to purchase electricity from Antelope, which is scheduled to be operational in October 2015. In early 2012, MidAmerican issued $850 million in bonds (5.75%), which are due in September 2039, for the Topaz solar farm in Southern California. Again in April this year, MidAmerican issued another $250 million in bonds for Topaz at 4.875%.
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Bloomberg cited Fitch Ratings as saying that MidAmerican planned to issue “Series A” secured notes due in 2035 for Antelope. The bonds have been rated BBB- (the lowest investment grade) by Standard & Poor’s and Fitch.
By. Charles Kennedy of Oilprice.com