Bank of Tokyo-Mitsubishi UFJ, a unit of Mitsubishi UFJ Financial Group Inc., will provide a “significant amount” of the debt financing needed to build Cape Wind Associates LLC’s 468-megawatt wind farm off the coast of Massachusetts.
The developer signed a term sheet to engage the bank, Boston-based Cape Wind said today in a statement. Construction is expected to begin in Nantucket Sound by the end of this year.
Barclays Plc is advising Cape Wind on raising the remaining financing. The project may cost about $2.6 billion and has power-purchase agreements with utilities Nstar and National Grid Plc to buy about 78 percent of its output, according to data compiled by Bloomberg.