Ørsted gets Greater Changhua investors on board

In: Windfarms
29/12/2020
Ørsted has signed an agreement with a consortium of investors for the Greater Changhua 1 offshore wind farm. The investors, Cathay PE and Caisse de dépôt et placement du Québec (CDPQ), will jointly own a 50% stake in the wind farm, while Ørsted will retain the other 50%. The deal is valued at TWD 75 billion

Matthias Bausenwein, President of Ørsted Asia-Pacific, said: "It has been our commitment to share our vast offshore wind financing experience with Taiwan's financial community since the early stages of developing the Greater Changhua projects. We are glad to successfully achieve this important milestone by bringing our reliable and experienced partner CDPQ to Taiwan for the first time. We are equally thrilled to collaborate with our local partner Cathay PE, so that the Greater Changhua 1 will also be locally owned."

The first of its kind in the Asia Pacific offshore wind sector, the 50-50 agreement is expected to help similar opportunities take off in Taiwan. Greater Changhua 1 is part of the 900 MW Greater Changhua 1&2a offshore wind project, which Ørsted is currently constructing. The complex will be located 35-60 km from the coast of Changhua County, and is expected to be completed in 2022.

CDPQ and Cathay PE will acquire a 50% share of the Greater Changhua 1 via a multi-tranche financing package from 15 international and local banks and two local life insurance companies: Cathay United Bank, CTBC Bank, E-SUN Bank, Taipei Fubon Bank, Cathay Life Insurance Co., Taiwan Life Insurance Co., BNP Paribas, Crédit Agricole, Deutsche Bank, DZ Bank, HSBC, Oversea-Chinese Banking Corporation, Korea Development Bank, Siemens Bank, Société Générale, Standard Chartered, and Sumitomo Mitsui Banking Corporation. The financing package was led and structured by Ørsted, and is partially supported by guarantees and/or loans from five international export credit agencies.

Kunal Patel, Vice President and Ørsted Head of Partnerships & Structured Solutions, commented: "This transaction marks the evolution of our partnership model into Taiwan, leveraging our extensive track record of development, construction and operation of large offshore wind farms. With a long–term agenda in Taiwan, we remain committed to the Greater Changhua 1 project and will also reutilize the capital into further developing new offshore wind projects to assist Taiwan in achieving its energy transition goals."

Taiwanese authorities still need to grant all customary and regulatory approvals for the deal to go ahead.

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