Invenergy closes construction financing on 1GW Traverse US wind power complex
Santander-led group of backers agree terms on Oklahoman mega-project being built by developer for switch-on in 2022
Invenergy has completed construction financing for its 999MW Traverse Wind Energy Center in central-west Oklahoma, the second largest US single-site onshore wind project now under construction.
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Santander, MUFG, Natixis, SMBC, and CIBC acted as coordinating lead arrangers for the financing, which includes a construction loan and letter of credit. GE Energy Financial Services, a global energy investor, is a partner in the project.
GE Renewable Energy is supplying the 2.5-116 and 2.82-127 wind turbines for what is presently the OEM’s largest global project customer.
“The close of construction financing for the Traverse wind project, Invenergy’s largest wind development to date, is a significant milestone,” said Meghan Schultz, senior vice president, finance and capital markets at Invenergy.
Traverse is one of three wind projects totaling 1.48GW that Chicago-based Invenergy is developing for two subsidiaries of giant utility holding company American Electric Power (AEP), which will assume ownership upon commercial operations by early 2022.
The North Central complex represents a nearly $2bn investment by Public Service Company of Oklahoma (PSO) and Southwestern Electric Power Company (SWEPCO). The 287MW Maverick Wind Energy Center and 199MW Sundance Wind Energy Center are the other projects.
PSO will acquire 675MW capacity from North Central and will recover the $906m in costs that include grid upgrade and interconnection from its Oklahoma rate base.
SWEPCO’s 810MW share will cost $1.09bn and be allocated to Louisiana (464MW), Arkansas (268MW) and wholesale customers in those locations (78MW).
Maverick and Sundance both achieved financial close in December 2020. Rabobank, CoBank, KeyBanc, and NordLB acted as lead arrangers for both financings, which each include a construction loan and letter of credit.
Invenergy Services will provide operations and maintenance, balance of plant, energy management, and asset management services under a 10-year agreement for the three facilities.
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