Enel banks $500m Kansas cash
Investment trio secure 400MW Cimarron Bend wind farm stake
Enel Green Power North America has signed a $500m tax equity agreement with three investors for the 400MW Cimarron Bend wind project in Kansas.
Under the terms of the agreement, the investors – Bank of America Merrill Lynch, JP Morgan and MetLife – will provide the cash in exchange for 100% of 'class B' membership interests in the project.
The interests will allow the three investors to obtain, at certain conditions provided by US tax laws, a percentage of the fiscal benefits that will be attributed to the project, Enel said.
In turn, Enel Green Power North America, through its Cimarron Bend Wind Holdings subsidiary, retains 100% ownership of the 'class A' interests and therefore management control of the project.
The funding will be released in two phases, the first instalment being released midway through the project’s construction and the second upon completion.
Construction of the wind farm started in April, with operations expected to start in 2017.
The project will require a total investment of $610m, which Enel said is in line with its current strategic plan.
Electricity generated by Cimarron Bend will be supplied under two 200MW bundled long-term power purchase agreements with Google and the Kansas City Board of Public Utilities.