Panda Power Funds - Sherman Power Project
Innovative financing helps fund first merchant power project in Texas in nearly a decade
Siemens Energy was awarded an order to supply a Siemens Flex-Plant™ 30 power station for the Panda Sherman Power project in Sherman, Texas.
Along with the Panda Temple project, Sherman is among the first merchant power transactions with construction risk in Texas to be financed in nearly a decade.
Siemens Financial Services (SFS) helped finance the project with a $35 million term loan which will partially fund the construction of the 758 MW natural gas-fired combined cycle power plant.
SFS had to work with an atypical structure for this project as it was supported by non-traditional hedge structures. The arrangement is currently the first hedge fund structure of its kind to attract third-party financing.
Siemens provided both highly efficient technology and complementary financing support to Panda Power to help complete this project.
SFS’s support of the Panda Sherman project was instrumental in helping obtain advantageous debt pricing.