JAPAN BANKS BACK DUKE-SUMITOMO BIG KANSAS WIND DEAL

Duke Energy, Sumitomo Secure $353M In Financing For Kansas Wind Farms

26 April 2012 (North American Windpower)

”Duke Energy Renewables and Sumitomo Corp. of America (the U.S. subsidiary of Japan-based Sumitomo Corp.)…have finalized their 50-50 ownership arrangement for two Kansas wind farms and secured approximately $353 million in financing for construction and operating costs.

“Duke Energy Renewables, a commercial business unit of Duke Energy…[will] sell a 50% stake in the 131 MW Cimarron II Windpower Project…[and in] the 168 MW Ironwood Windpower Project…to Sumitomo. The companies will complete construction of both wind farms later this year.”

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”The financing consists of a construction and term loan facility of approximately $330 million and a letter of credit facility totaling roughly $23 million. The lenders involved in the deal were Sumitomo Mitsui Banking Corp., Mizuho Corporate Bank Ltd. and Bank of Tokyo-Mitsubishi UFJ Ltd…

“…Kansas City Power & Light will purchase all of the electricity and associated renewable energy credits (RECs) produced by Cimarron II under the terms of a 20-year agreement. Westar Energy will buy all the power and RECs produced by the Ironwood wind farm through a 20-year agreement.”