CIP divests minority stake in Taiwanese duo

4C Offshore | Tom Russell
By: 15/07/2021 CIP
Copenhagen Infrastructure Partners (CIP), on behalf of the funds Copenhagen Infrastructure II K/S (CI-II) and Copenhagen Infrastructure III K/S (CI-III), has entered into an agreement to divest a 25% stake in the Taiwanese 595MW ChangFang and Xidao (CFXD) offshore wind farms to Global Power Synergy Public Company Limited (GPSC). GPSC will acquire the stake through its wholly owned subsidiary, Global Renewable Synergy Company Limited (GRSC).  

CI-II and CI-III will continue as joint majority owners in the project and lead the construction phase towards commercial operations in 2024.

GPSC operates as a subsidiary and innovative power flagship of PTT Public Company Limited (“PTT”), the largest energy company in Thailand. By partnering with GPSC, CFXD also contributes to the New Southbound Policy of Taiwan by enhancing the cooperation between Taiwan and Thailand within the area of renewable energy.  

Located 13-15 km off the coast of Changhua County in Taiwan, the CFXD wind farm has a planned capacity of 595MW. CFXD reached Financial Close in February 2020 and construction of the offshore wind park with a high share of local Taiwanese content is progressing as planned towards commercial operations date in Q1 of 2024. It will consist of 62 MHI Vestas V174-9.5 MW wind turbines.

CFXD is financed through a combination of equity and senior loans from a consortium of 25 international and Taiwanese banks and financial institutions as well as 6 export credit agencies. CIP acquired the CFXD project in 2017. The project obtained grid allocation in 2018 and entered into a 20-year PPA with the state-owned Taiwan Power Company in 2019. Local Taiwanese suppliers and partners include Century Iron & Steel Industrial Company Limited, TECO, Hung Hua Construction and CTCI.

GPSC will, through GRSC, enter into the project as a co-owner, alongside CI-II and CI-III, as well as the local Taiwanese shareholders, which hold a minority stake in the project.

“We welcome GPSC as co-investor and partner in CFXD. The transaction underpins the significant potential of offshore wind in Taiwan and in other Asian countries and recognizes CIP’s value add to the project during the development phase and initial construction phase”
said Michael Hannibal, Partner at CIP.

The transaction is subject to customary closing conditions, filing for Foreign Investment Approval and filings with the Ministry of Economic Affairs, Taiwan R.O.C., and following closing of the transaction, CI-II and CI-III will remain controlling shareholders and operators of the CFXD offshore wind farm.  

FIH Partners acted as exclusive financial advisor and White & Case acted as legal advisor to CIP on the transaction.

For more information on the Taiwanese offshore wind market overall,  
click here. You can also view projects worldwide on 4C Offshore's Interactive map.