Renewable energy developer Cape Wind has inked a term sheet with the Bank of Tokyo-Mitsubishi to secure debt financing for the 468MW offshore wind farm.
As per the agreed terms, the bank will be the coordinating lead arranger role for Cape Wind.
The bank will provide a significant amount of debt capital, which will be used to pay for development and construction costs of the project.
Cape Wind president Jim Gordon said that securing the financing is one of the final steps before the company could embark upon the construction of the wind project.
"Together with BTMU, we are engaging a group of experienced financial institutions as our core banking group and look forward to completing the financing of America’s first offshore wind farm which will deliver significant environmental, energy and economic benefits to Massachusetts and the surrounding region," added Gordon.
BTMU project finance director Takako Sakai noted, "We have been impressed with Cape Wind’s dedication and perseverance in moving this clean energy project through the regulatory and development process, and are glad to be able to assist this financing."
Barclays is Cape Wind’s financial advisor and will continue to help the company secure the remaining financing.
Massachusetts utilities National Grid and NSTAR had earlier inked long term power purchase agreements with the company to procure 77.5% of the power generated at the wind farm.