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 Cape Wind project, a 468 MW offshore wind farm planned for Nantucket Sound.
BTMU is providing a significant amount of debt capital toward the commercial bank financing for Cape Wind. The financing will be used to pay for the project's development and construction costs.
Cape Wind expects to complete project financing and begin construction on the wind farm by the end of the year.
"Obtaining financing is one of the last steps to complete before proceeding with the construction of the project," says Cape Wind President Jim Gordon. "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 adviser and will continue to advise Cape Wind on raising the remaining financing needed.
Cape Wind has sold 77.5% of its power output through long-term power purchase agreements to National Grid and NSTAR.