A wind power plant in the state of Illinois is the latest in an ever-lengthening string of such projects in the US to feature a letter of credit (L/C) facility in its financing structure.

This latest power plant is to be built near Danville by Invenergy Wind LLC.

Blended financing

The financing package put together by the project developer includes construction, bridge and term loans as well as the L/C facility.

The financing uses a blend of bank and institutional sources, which Invenergy says will provide both flexibility and tenor.

It will be used to fund the development of the 200 MW California Ridge Wind Energy plant, Invenergy's seventh wind project in Illinois.

String of projects

This is the latest of a burgeoning number of US wind power projects to feature L/C facilities.

These include several multi-million US dollar projects in the so-called Texas Panhandle (DC World News, 14 December 2009); five more in Wyoming and Colorado (DC World News, 26 May 2010), and one in Hawaii (DC World News, 3 April 2012).

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.