Halifax, Nova Scotia-based Shear Wind has completed debt financing for its 62 MW Glen Dhu wind project.
According to the company, the total amount of the debt financing is approximately C$114.5 million, which includes approximately C$107 million in construction financing. The company says the debt financing converts to a term loan with an 18-year term, subject to the provisions of the credit agreement.
The loan has a floating interest rate based on the Canadian Dealer Offered Rate and an interest rate swap for hedging purposes. 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 the Spanish government's Ministry of Economy and Finance.
In addition, 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 LP's power purchase agreement with Nova Scotia Power Inc., as well as a letter of credit of approximately C$5.9 million for debt reserve.
The Glen Dhu project, which features 27 Enercon E-82 2.3 MW wind turbines, is expected to be the largest wind farm in Nova Scotia and is on track to begin commissioning in December.
Shear Wind expects Glen Dhu to be fully operational by March 2011.
SOURCE: Shear Wind