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Financial close for ChangFang and Xidao

By: Tom Russell 21/02/2020 CIP

General Windfarms

Copenhagen Infrastructure Partners (CIP) has announced that it has reached financial close for the 589 MW ChangFang and Xidao wind farm, off the coast of Changhua County, Taiwan. It follows news yesterday (20 February 2020) that CIP divested a minority stake in the ChangFang and Xidao offshore wind project to life insurance companies Taiwan Life Insurance and TransGlobe Life.

The project will be built by international and local contractors under eight key construction agreements. The project's local content plan was approved in December 2019 by Taiwan's government, and it is the offshore wind project with the highest localisation percentage in the Asia Pacific region. The two projects will localise the jacket foundation, pin piles, onshore sub station, transport and installation contracts and more than 15 wind turbine components. The 62 9.5 MW wind turbines will be supplied and delivered by MHI Vestas.

The project will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions (including CI II, Taiwan Life Insurance and TransGlobe Life Insurance), as well as 6 export credit agencies. The total project financing raised from the banks and financial institutions amounts to approximately USD 3 billion (NT$ 90 billion).

CIP acquired the ChangFang and Xidao project in 2017 and the project obtained grid allocation in 2018. In 2019, the project entered into a 20-year PPA with the state-owned Taiwan Power Company. CIP engaged Copenhagen Offshore Partners (COP) in 2017 to lead the development and construction. COP has established a specialist offshore wind team comprising 70 people in Taipei covering all aspects of the project including permitting, engineering, design, procurement and stakeholder engagement. The project is expected to start commercial operations in Q1 2024.

To support the development, the project has entered into contracts with the following companies: New Power Partners, PeakWind, Lautec, Wood Thilsted Partners, Bech Bruun, C2Wind and JUM BO Consulting Group.

“This project, besides being a remarkable project in Taiwan where it marks the continuation of the offshore wind build out, is part of leading the way for the complete APAC region going into offshore wind” says Anders Eldrup, CIP APAC Chairman

“Reaching financial close marks a major milestone for the Changfang and Xidao project and we are really excited about entering the construction phase of the project and will once commercial operation start provide clean energy to more than 600,000 households in Taiwan” says Michael Hannibal, CIP Partner.

“Since we entered the Taiwan offshore wind market in 2017 we have worked intensively with Taiwanese companies and the government to build up the local supply chain and we are therefore proud to deliver the project with the highest extent of localization in Taiwan to date” explained CEO of Changfang Xidao, Jesper Krarup Holst.

MUFG acted as Financial Advisor and CTBC as the local Financial Advisor for the project debt financing. White & Case acted as legal advisor and Baker McKenzie as the local legal advisor. FIH Partners acted as Financial Advisor to CIP.

For more information on offshore wind farms worldwide, click here.

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Financial close for ChangFang and Xidao

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