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Forget Rising Interest Rates, Banks Are Still Loving Solar Power

April 19, 2018, 7:09 PM

Interest rates are rising, making debt much more expensive for capital-intensive industries across America. But there’s at least one exception: solar.

While the cost of borrowing has been increasing since 2016, some banks are taking a smaller cut to win deals from solar developers. Loans of seven years or longer can be obtained for 137.5 basis points over the benchmark London Interbank Offered Rate, or Libor, down from as much as 200 basis points last year, said Keith Martin, a project-finance attorney at Norton Rose Fulbright LLP. Even the higher-rate loans for residential projects are getting ...

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