In a statement released on Wednesday Cape Wind Associates announced it has secured more financial partners – French Bank Natixis and Netherlands based financial services Rabobank, to back the Cape Wind project in its efforts to build a 130-turbine wind farm in Nantucket Sound.
The company proclaimed that, together with The Bank of Tokyo-Mitsubishi UFJ Ltd., it had included Natixis and Rabobank as "lead arrangers" for the Cape Wind Project. Lead arrangers are answerable for sorting out a gathering of commercial banks to provide financing to the venture. The three banks additionally hope to give more than $400 million in debt themselves, as stated by Cape Wind representative Mark Rodgers.
The debt might add to $900 million in potential financing from different sources that the developer recently has secured for the venture, which is assessed to cost in any event a staggering $2.6 billion.
"This is one of the key steps in finishing the financing bundle for the development of the Cape Wind venture," Theodore Roosevelt IV, MD at Barclays, Cape Wind's budgetary counsel, said in the statement.
Last month, Cape Wind President Jim Gordon announced that it EKF, Denmark’s Export Credit Rating Agenct approved a $600 Million loan to help finance the venture.
Danish Pension fund, PensionDanmark, declared in June that it might put $200 Million in Cape Wind. In December, Cape Wind marked an arrangement to built’s its turbines and an electric service platform to convert its power for transmission with Siemens, which additionally offered to give a $100 Million financing to the project.
"We're seeking after extra value speculators working with Barclays as our money related consultants," Rodgers said. Cape Wind additionally hopes to meet all requirements for expense credits that might keep the expense of the project from rising, he said.
Currently, Cape Wind still faces restriction, including a lawsuit challenging an agreement between the organization and Nstar for the purchase of the project’s power. The organization has so far decimated back every lawsuit the venture has confronted, yet rivals call attention to that they just need to win one.
"Cape Wind can't advance until those issues are resolved" said Audra Parker, president of the lead Cape Wind opposition group, the Alliance to Protect Nantucket Sound.
The organization will start construction in the wake of closing financing, beginning with an onshore cable route construction by the end of 2014 and ocean based development by 2015.
Cape Wind hopes to commence commercial operations in late summer 2016. The project was initially proposed in 2001.
In the event that they don't start development in 2015, Cape Wind dangers defaulting on its power purchase agreements with Nstar and National Grid.