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.