Shear Wind Inc. has announced that Glen Dhu Wind Energy LP has signed a credit agreement in connection with the debt financing for its 62.1 MW Glen Dhu Project in Nova Scotia. The project is presently on track to begin commissioning turbines in December and to be fully operational by March 2011, and will consist of 27 ENERCON E-82 2.3 MW wind turbines.
The total amount of the debt financing is approximately C$114 million and includes approximately C$107 million in construction financing, which converts to a term loan with an 18-year term, subject to the provisions of the credit agreement.
The lenders under the debt financing are the Spanish bank Banco Bilbao Vizcaya Argentaria SA (BBVA) and Instituto de Credito Oficial (ICO), a state-owned corporate entity attached to Spain's Ministry of Economy and Finance. As part of the debt financing, BBVA and ICO are providing a C$1.5 million letter of credit for security pursuant to Glen Dhu Wind Energy's power purchase agreement with Nova Scotia Power Inc. BBVA is also providing a letter of credit in the amount of approximately C$5.9 million debt reserve.
Shear Wind owns approximately 51% of the limited partnership units of Wind Energy's, and Genera Avante Holdings Canada Inc. owns approximately 49% of the units.
SOURCE: Shear Wind Inc.