USA: Cape Wind Completes Debt Financing
Completing a financing milestone, Cape Wind has signed a term sheet to engage The Bank of Tokyo-Mitsubishi UFJ (BTMU) as its Coordinating Lead Arranger of the commercial bank portion of the total debt financing for the 468-megawatt offshore wind farm.
The announcement finalizing this selection follows remarks by Cape Wind President Jim Gordon at a renewable energy finance conference in New York last month in which he stated that Cape Wind was planning to select BTMU.
BTMU is providing a significant amount of debt capital toward the commercial bank financing for Cape Wind which will be used to pay for development and construction costs of the project.
“We have been impressed with Cape Wind’s dedication and perseverance in moving this clean energy project through the regulatory and development process, and are glad to be able to assist this financing.” said Takaki Sakai, Project Finance Director of BTMU.
Cape Wind expects to complete project financing and begin construction by the end of the year.
“Obtaining financing is one of the last steps to complete before proceeding with the construction of the project,” said Jim Gordon, Cape Wind President. “Together with BTMU, we are engaging a group of experienced financial institutions as our core banking group and look forward to completing the financing of America’s first offshore wind farm which will deliver significant environmental, energy and economic benefits to Massachusetts and the surrounding region.”
Barclays is Cape Wind’s sole Financial Advisor and will continue to advise Cape Wind on raising the remaining financing needed.
“This is a significant step toward achieving financial close for Cape Wind,” said Ted Roosevelt IV, Managing Director at Barclays.
Cape Wind has sold 77 ½% of its power output in long term Power Purchase Agreements to National Grid and NSTAR, the two largest electric utilities in Massachusetts. Cape Wind has announced it is purchasing a marina on Falmouth harbor on Cape Cod to serve as its maintenance and operations facility. Cape Wind is the first U.S. offshore wind project to be fully permitted, and to have been issued a commercial lease and received approval for its Construction and Operations Plan by the U.S. Department of Interior.
Press release, March 20, 2013; Image: capewind