Enel Green Power North America Development, a subsidiary of Enel Green Power, and EFS Buffalo Dunes, a GE Capital (NYSE: GE) subsidiary, signed an agreement for $260 million in funding for the 250 MW Buffalo Dunes Wind Project in Kansas in return for a tax equity agreement.
The companies signed the agreement with a syndicate led by J.P. Morgan that includes Wells Fargo Wind Holdings, Metropolitan Life Insurance Co. and State Street Bank and Trust Co. The syndicate is expected to contribute funds in the fourth quarter of this year, subject to the fulfillment of requirements outlined in the agreement. At that time, the parties will sign the tax equity agreement, which will allow the syndicate to obtain a percent of the tax benefits from the project.
Currently, EFS Buffalo Dunes holds a 51 percent equity stake in the project, while Enel holds the remaining 49 percent. Enel has an option to purchase an additional 26 percent of the project specific dates in 2013 and 2014.
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