Mitsubishi UFJ Financial Group (MUFG) will provide project financing for the 39.1MWTom Nan Clach CfD windfarm project in Scotland.
Infinergy was the initial developer of the wind project, then sellling it to energy investor Belltown Power Limited.
The Tom Nan Clach project will receive a £77 million (US$98.6 million) loan from MUFG. DLA Piper has advised the Japanese lender on the transaction.
As we reported in late November last year, the Scottish government gave the green light to the project. Infinergy secured a Contract for Difference (CfD) for the wind farm.
Tom nan Clach Wind Farm was consented in 2013 comprising 17 turbines, each with an installed capacity of 2.3MW, but a grid connection date no earlier than 2018. Wind turbine technology and design principles have evolved and improved a great deal in the last couple of years and so, given the time available between consent and connection to the grid, the site has been subject to further research and environmental studies. An application to ‘repower’ with 13 slightly larger turbines, but the same overall installed capacity of 39MW was made to The Highland Council in August 2015.
MUFG is one of the world’s leading financial groups, with total assets of approximately $2.6 trillion (USD) as of December 31, 2016. The group has a history of contributing to the development of projects that do not use fossil resources and the dissemination of renewable energy by leveraging its experience and global network and engaging in initiatives through its core business, such as project finance.
Natasha Luther-Jones, Head of Renewables (EMEA) at DLA Piper, said:
"This is the second on-shore wind farm project financing we have closed in as many weeks and given the movement in Europe to auction based regimes and similar CfD type schemes, the experience our team has gained will be invaluable."