Quinbrook closes financing for Phase I of 365MW windpower project

19 January 2018 (Last Updated January 18th, 2018 09:04)

Quinbrook Infrastructure Partners' Low Carbon Power Fund has raised enough tax equity financing to commence the first phase of construction for the 365MW Persimmon windfarm in Oklahoma, US.

Quinbrook Infrastructure Partners’ Low Carbon Power Fund has raised enough tax equity financing to commence the first phase of construction for the 365MW Persimmon windfarm in Oklahoma, US.

Quinbrook also recently acquired a 75% controlling equity stake in the farm and established a joint venture (JV) with project developer Elawan Wind.

Completion of construction of the 200MW first phase and first generation are expected to occur around June this year.

“We have successfully navigated the many challenges arising from the recent US tax reform legislation and secured a very competitive financing package.”

GE Renewable Energy will supply 73 of its 2.5MW turbines and seven 2.3MW turbines to the project, while GE Energy Financial Services will provide more than $190m of tax equity financing.

The company will also serve as bookrunner, administrative agent and lender for $252m of credit facilities from commercial banking company CIT, the Mitsubishi UFJ Financial Group (MUFG) and Dutch financial company Rabobank.

Quinbrook Infrastructure Partners senior managing director Shawn Cumberland said: “The Persimmon wind project is the perfect addition to Quinbrook’s growing wind portfolio, which now exceeds 2GW.

“As partners, we have successfully navigated the many challenges arising from the recent US tax reform legislation and secured a very competitive financing package led by GE, as well as long-term offtake commitments with a first-rate counterparty.

“The first stage of Persimmon represents a critical step in building out Quinbrook’s large-scale wind portfolio in the US, which will start generating cash returns for our investors from the middle of this year.”

The project is estimated to generate around 900,000MWh of zero-emission renewable power per annum, resulting in the mitigation of 630,000tn of carbon dioxide (CO2) annually.