On 9 July 2013, Enel Green Power stated that Enel Green Power North America Development, an US subsidiary of Enel Green Power, and EFS Buffalo Dunes, a GE Capital subsidiary, signed a capital contribution agreement with a syndicate led by J. P. Morgan, whereby the syndicate commits to fund approximately US$260 million for the 250 MW Buffalo Dunes Wind Project in Kansas.

The syndicate is expected to contribute funds in the fourth quarter of 2013. The project is supported by a long-term power purchase agreement.

EFS Buffalo Dunes (GE) currently holds a 51% equity stake in the wind project, while Enel Green Power holds the remaining 49%. Enel Green Power has an option to purchase an additional 26% of the project from EFS Buffalo Dunes on specific dates in 2013 and 2014.

Under the tax equity agreement that will enter into force with the J. P. Morgan-led syndicate, the approximately 260 million US dollars mentioned above will be contributed by the syndicate to the Buffalo Dunes project in return for an equity interest with limited voting rights.

This equity interest will allow the syndicate to obtain a percentage of the fiscal benefits attributed to the Buffalo Dunes project.

Enel Green Power provided a parent company guarantee, not extended to the return on the investment, for its subsidiary's obligations under the capital contribution agreement and the tax equity agreement to be signed later in the year.

Source: ENEL