03/19/13 Cape Wind has announced it has finalized a deal with Japanese banking giant Bank of Tokyo-Mitsubishi UFJ (BTMU) to provide debt for the project, Cape Cod Times reports.
The project, which is expected to cost $2.6 billion, will be financed through a combination of equity from investors and loans from banks and other institutions.
Cape Wind officials have said they expect to begin construction this year, which is necessary for the company to benefit from the federal production tax credit that expires Dec. 31.
The debt side of the equation is only part of how Cape Wind plans to pay for constructing 130 wind turbines in the Nantucket Sound.
The company needs at least an additional $600 million in equity. Siemens Energy Inc., which is expected to build Cape Wind's turbines, may provide $100 million for the project and the wind energy developer is seeking a loan guarantee of about $350 million from the United States Department of Energy, according to a source with knowledge of the application.