Cape Wind secures debt financing for 468MW offshore wind farm in US

US-based renewable energy developer, Cape Wind, has secured debt financing from the Bank of Tokyo-Mitsubishi (BTMU) for the development of an offshore farm.

The funding will be employed to facilitate the development and construction costs of a 468MW facility in the US.

Cape Wind stated that BMTU will be the company’s Coordinating Lead Arranger for the commercial bank portion of the total debt financing while Barclays is the sole Financial Advisor to help secure the remainder of the financing.

Commenting on the developments Cape Wind president Jim Gordon stated that securing the financial facility marks the last step before beginning the construction of the project.

"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," noted Gordon.

BTMU project finance director Takaki Sakai added, "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."

Cape has also announced the purchase of a marina on Falmouth harbor on Cape Cod to serve as its maintenance and operations facility.

The facility is the first US offshore installation to be fully permitted, and issued a commercial lease as well as approval for construction and operations by the Department of Interior.

The company earlier concluded long term power purchase agreements with National Grid and NSTAR of Massachusetts to sell 77.5% of the output generated by the offshore farm.