US developer sPower has closed debt financing and tax equity for the 218MW Prevailing wind farm in South Dakota.
The lenders for the approximately $319m construction and term facility are HSBC and CIBC.
The banks’ commitment will also be backed by $189m tax equity from Bank of America Merrill Lynch.
Prevailing will be located in Bon Homme, Charles Mix and Hutchinson Counties, with the electricity generated sold to an unnamed utility under a 30-year power purchase agreement.
sPower vice president of structured finance and M&A Brian Callaway said: “sPower is very pleased to announce the concurrent closing of the construction debt, term debt and tax equity on this 218MW wind project.
“This is a first for us in the wind finance space and continues to demonstrate sPower’s position as the industry leader in renewable energy finance.”
sPower chief financial officer David Shipley said: “This is a milestone project for us, and it is rewarding to realize success with wind similar to what we have historically done with solar.
“We have always expected wind power to be an increasingly large portion of the sPower portfolio.
“This achievement strengthens our desire to leg further into the wind space.”
CIBC Global Corporate Banking managing director and head Susan Rimmer said: “CIBC is pleased to have partnered with sPower to lead the financing on this groundbreaking project.
“The ability to execute such a landmark project speaks to sPower’s capabilities as a leading renewables developer.
“We look forward to partnering with and supporting sPower’s continued expansion in the US renewable energy industry.”
HSBC Bank USA managing director and head of power, utilities and renewables James Wright said: “HSBC is doing our part in the world’s transition to a low carbon economy by offering innovative solutions such as this structured finance transaction for sPower.
“By supporting the Prevailing Wind Park project, we are financing a sustainable future.”
CohnReznick Capital was financial advisor and McDermott Will & Emery was sPower’s counsel in the deal.