Duke Energy Renewables and Sumitomo Corp. of America recently finalized their 50-50 ownership split of two Kansas-based wind farms while also obtaining $353 million for construction and operating costs.
This plan was initially unveiled back in late March. Duke Energy Renewables put up a 50% stake for sale in its 131 MW Cimarron II Windpower Project in Gray County and the 168 MW Ironwood Windpower Project in Ford County. Sumitomo entered the picture and on March 27, the deal was announced.
The Cimarron II and Ironwood projects have 20-year contracts already in place with Kansas City Power & Light for the former and Westar Energy for the latter to purchase the generated electricity and the associated renewable energy credits (RECs).
The financing of the projects consists of construction and term loan facility of $330 million and a letter of credit facility of $23 million. The lenders in this deal were Sumitomo Mitsui Banking Corp., Mizuho Corporate Bank, Ltd., and Bank of Tokyo-Mitsubishi UFJ, Ltd.