A division of Duke Energy Corporation of the US is using letters of credit (L/Cs) in financing arrangements for future wind-power projects.

Green Frontier Windpower Holdings (GFWP), an affiliate of Duke Energy Generation Services, has put up five wind-farm projects as collateral for the L/Cs and a loan.

Financing terms

The North Carolina-based company has secured a 15-year term loan of US$325 million as well as L/Cs totalling US$50 million.

The five wind-farm projects put up as collateral are located in Wyoming and Colorado.

Existing sites

New York Stock Exchange-listed Duke Energy already owns and operates 735 megawatts of commercial wind-power generation at seven US sites.

It has so far committed more than US$1 billion since 2007 to build its wind-power business.

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