Alterra, Inovateus close financing for 7-MW solar project in Indiana

Canadian renewables company Alterra Power Corp (TSE:AXY) and partner Inovateus Solar LLC have closed the required financing for the 7-MW DC Kokomo solar project in the US state of Indiana.

Alterra Power, which will hold a stake of at least 75% in the project, said on Tuesday that 1st Source Bank, part of 1st Source Corporation (NASDAQ:SRCE), has provided a USD-8.9-million (EUR 8m) construction loan for the scheme along with a USD-150,000 letter of credit. In addition, 1st Source has made a USD-4-million tax equity investment commitment and provided a USD-5-million term loan takeout.

The proceeds of the term loan will be used to cover the portion of the costs not paid by the tax equity investment, Alterra said.

The Kokomo solar park is expected to enter service in December 2016. It will be selling all of its output to Duke Energy Indiana under a 20-year deal. Inovateus is managing the construction process and will also provide operations and maintenance services upon completion.

The two companies are meanwhile also developing a 13-MW DC solar project in Michigan, which is expected to start power generation in 2017. It has a 25-year power purchase agreement (PPA) in place.

(USD 1.0 = EUR 0.906)

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