Fortis, BP and NRG Successfully Close $280 Million Syndication for Sherbino I Wind Farm

HOUSTON, April 4, 2008 /PRNewswire/ -- Fortis Merchant Banking today announced it successfully closed syndication of a $280 million senior secured financing for Sherbino I Wind Farm LLC, a joint venture owned by BP Alternative Energy North America Inc. and NRG Energy, Inc.

Fortis Merchant Banking structured and underwrote the senior secured financing that consists of a construction loan of $280 million, which will convert into a 15-year term loan in the amount of $140 million at the commercial operation date.

The syndication was oversubscribed with nine banks joining the deal. Fortis is the sole bookrunner, lead arranger and administrative agent.

The financing is accompanied by a long-term, fixed price gas hedge provided by Fortis Energy Marketing and Trading (FEMT). The hedge was designed to accommodate wind intermittency risk and provides Sherbino I Wind Farm with greater revenue stability for the term of the hedge.

"Fortis' successful syndication of the Sherbino transaction amidst very challenging loan market conditions speaks volumes about the strength of this offering and the quality and commitment of its sponsors," said John Sullivan, U.S. Head of Syndications at Fortis. "We are all very pleased with this result and look forward to leveraging the complimentary capabilities of Fortis Merchant Banking and FEMT to achieve similar outcomes for other Fortis clients."

"This is another great example of Fortis' commitment to financings in the wind energy sector," said Mark Dennes, Director, Fortis Merchant Banking. "As one of the earliest lenders to wind projects in the North American market, we are excited to finance this important wind power project."

The Sherbino I Wind Farm, currently under construction, is a 150 megawatt project that consists of 50 Vestas V90s turbines, located in Pecos County, Texas.

About Fortis Merchant Banking

Fortis Merchant Banking provides high-value tailor-made services to medium-sized companies, large corporations and institutional investors. As a worldwide organization, we have developed special expertise in cash & treasury management, debt, equity and structured finance, trading & financial risk hedging, financial advisory and structuring. We serve commodity producers, traders and distributors all over the world. We are a world leader in fund administration, global custody, securities lending and clearing services. Thanks to an integrated network, the Business combines the strength of an international group with local expertise and proximity. Dedicated Relationship Managers coordinate all banking facilities and can call on specialists in all fields.

About Fortis

Fortis Euronext: FORA Amsterdam: FORA is a global financial services provider engaged in banking and insurance. We offer our personal, business and institutional customers a comprehensive package of products and services through our own channels, in collaboration with intermediaries and through other distribution partners. With a market capitalization of EUR 35.1 billion (USD 55.5 billion) as of March 31, 2008. Our sound solvency position, our presence in over 50 countries and our dedicated, professional workforce of 65,000 enable us to combine global strength with local flexibility and provide our clients with optimum support. More information is available at www.fortis.com.