Deutsche Bank closes hedge for Taiwanese project

In: Windfarms

Deutsche Bank has closed a deal contingent interest rate swap on TWD90 billion project finance for the development of the 589 MW
ChangFang and Xidao offshore wind farm on the coast of Changhua County, Taiwan.

The investment consortium, led by Copenhagen Infrastructure Partners (CIP) through its funds CI II and CI III, with two Taiwan life insurers, closed the largest ever wind farm project finance in Taiwan at the end of February.

Deutsche Bank is the sole Pre-hedging and Sole hedging coordinator for a deal contingent hedge on notional project finance of approximately USD 3 billion (TWD90 billion). The bank is also among 25 banks in the syndicate group of lenders. This is the second such deal contingent interest rate swap transaction delivered by Deutsche Bank for the wind farm project in Taiwan.

Taiwan Country Chief and Head of Investment and Corporate Banking Cynthia Chan said: “Deutsche Bank is pleased to have successfully closed this deal contingent interest rate swap during extremely volatile market conditions.”

Deutsche Bank Global Co-head of TIE Origination Dominik Thumfart said: “Deutsche Bank is pleased to provide finance and a sophisticated structuring solution to support Copenhagen Infrastructure Project’s participation in the rapid development of Taiwan’s renewable energy industry.”

ChangFang and Xidao project is expected to start commercial operations in Q1 2024. Engineering and pre-construction works are underway and the project is scheduled to be constructed in the period 2021-2023. The two projects will localise the jacket foundation, pin piles, onshore sub station, transport and installation contracts and more than 15 wind turbine components. It will consist of 62 MHI Vestas V174-9.5 MW wind turbines.

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