UK independent generating company International Power has completed the financing of a $1.375 bn power plant construction project in the US which is scheduled to add 4000 MW to the 1900 MW of installed capacity it currently has available. Earlier this month International Power began operating the first unit of its 570 MW Blackstone, Massachusetts plant and expects to commence operation of the second unit as well as a plant outside Austin, Texas by the end of the summer.

Funding of the ANP Funding I, LLC credit facility comprises a five-year $1.215 bn floating-rate construction and term loan facility, a $120 million five-year revolving working capital facility, and a five-year $40 million debt service reserve letter of credit facility.

The ANP Funding I, LLC financing supports a portfolio of five generating stations owned by International Power’s wholly owned subsidiary American National Power. They include Blackstone, Bellingham and Milford in Massachusetts, and Midlothian I & II and Hays in Texas. The power plants will be designed to achieve a high level of efficiency combined with relatively low capital costs.

“This financing will help our new US merchant generation fleet fulfil its mission of providing cleaner and more reliable low-cost electricity than the existing power plants in their respective markets”, said International Power CEO Peter Giller. “I would like to thank the strong group of relationship banks participating in this financing for their support”, he added.

The arranger banks for the financing are ABN Amro, Citibank, Deutsche Bank, ING Barings, Societe Generale, Royal Bank of Scotland and Toronto Dominion. Other members of the syndicate are Abbey National, KFW, ANZ, National Australia Bank, Fortis Bank, Royal Bank of Canada, Bank of Scotland, Sumitomo Mitsui, Arab Banking Corporation and IKB.

International Power is one of two companies formed from the demerger of National Power in October 2000. It has developed a geographically diversified generating base with particular emphasis on the US market. In addition to the UK and US, it has operating facilities in Australia, the Czech Republic, Portugal, Spain, Turkey, Malaysia, Pakistan, and Thailand.