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NTR’s US wind energy arm has closed a deal with a group of
international institutions that will allow it to borrow €270
million to fund a project in Kansas.
The Irish utility said that a group of international institutions
have agreed to lend a total of $350 million (€271m) to the
Post Rock wind farm that its subsidiary, Wind Capital, is
developing in Kansas in the mid-western US.
Wind Capital began building the 201 MW wind farm at Post
Rock last year. It has a deal to supply electricity over 20
years to local energy company Westar. Wind Capital aims to
have 500 MW complete and up and running across its various
projects in the US by the end of this year.
NTR
chief executive, Michael McNicholas, said that the US company
is “well on its way” to doing this. It has projects with a
total capacity of 350 MW under construction at the moment.
Wind Capital chief executive Ciaran O’Brien pointed out that
the loan was raised in a difficult economic environment and
also against a background where there is uncertainty over
the future of federal support for wind energy.
Unlike most European countries, the US does not offer guaranteed
prices for green energy. Instead, the federal government gives
tax breaks to investors in such projects.
It is not clear if the administration will continue with
these supports after this year. However, backers of existing
projects would not lose their tax breaks if the current system
were to end or change.
The financing package consists of a $293 million construction
loan, a $63 million term loan and a $20 million letter of
credit. Bayern LB and Rabobank acted as joint underwriters
on the construction loan.
Source - The Irish Times
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