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Gode gets GIP for € 780 million says DONG

4C Offshore | Tom Russell
By: Tom Russell 10/09/2015 4C Offshore
DONG Energy today signed an agreement to divest 50 per cent of Gode Wind 1, to Global Infrastructure Partners (GIP). The total sales price amounts to approximately €780 million (DKK 5.8 billion) which will be paid in the period 2015 to 2016.

Terms of the transaction outline that GIP will issue a rated project bond to a consortium of renowned German insurance companies with Talanx, a German insurance group, as cornerstone lender. The development of a rated bond structure that facilitates the provision of institutional debt to offshore wind construction projects was initiated and led by DONG Energy and implemented with the strong support from GIP and Talanx. This transaction marks the issuance of the first non-recourse, investment grade, certified green bond dedicated to part finance an offshore wind farm asset under construction.

The transaction is subject to approval by the competition authorities and is expected to be completed in the second half of 2015.

Samuel Leupold, Executive Vice President in DONG Energy Wind Power, said: “I’m delighted about this partnership and it is a great pleasure to welcome GIP as a partner of DONG Energy. I am also very excited about the evolution of DONG Energy’s market leading partnership model to facilitate this innovative long term investment by German institutional investors into the offshore wind sector for the first time.”

Adebayo Ogunlesi, Chairman and Managing Partner of GIP said: “We are delighted to be forming this strategic partnership with DONG Energy, a recognised leader in the energy sector and a pioneer in the development and operation of offshore wind farms. This transaction builds on GIP’s considerable experience in the renewable space and is in line with our strategy of partnering with industry leaders. We are pleased to bring GIP’s added-value investment model to the promising market for offshore wind projects.”

Dr. Thomas Mann, Chief Investment Officer of Talanx Asset Management, said: “Gode Wind 1 is a perfect match for us. We are more than delighted to have teamed up with two very experienced and reputable sponsors, DONG Energy and GIP. In addition to that, the investment demonstrates Talanx’s capability to structure, arrange and finance large scale transactions. For the first time a group of institutional investors has been lined up by an insurer to support the financing of a landmark offshore wind project.”

According to the press release, all parties have agreed that DONG Energy will finalise the construction of the Gode Wind 1 offshore wind farm project. Furthermore they will provide operation and maintenance services to Gode Wind 1 from its O&M base in Norddeich in Germany. Finally, the parties have agreed that DONG Energy will provide a route to market for the power production from Gode Wind 1.

Gode Wind 1 is expected to reach a 330MW capacity, whereas the total capacity for theGode Wind 1 and 2 is expected to reach 582MW. Offshore construction works for the Gode Wind 1 and 2 offshore wind farm began in May this year. Gode wind 1 will consist of 55 SWT-6.0-154 turbines from Siemens, generating enough renewable energy to supply 340,000 German households. Both Gode Wind 1 and  Gode Wind 2 are expected to be fully commissioned in 2016.

According to DONG, this announcement does not change previous financial guidance for the 2015 financial year or the announced expected investment level for 2015-2016.


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