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Northland Power Announces Signing of Credit Agreement for $5.2 Billion Project

4C Offshore | Chloe Emanuel
By: Chloe Emanuel 19/09/2023 Northland Power
Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) along with its partner, Orlen S.A. (“Orlen”), today announced that its Baltic Power offshore wind project (“Baltic Power” or the “project”) in Poland has signed a credit agreement to secure an equivalent of $5.2 billion of non-recourse green financing that adheres to Northland’s green financing framework covering construction and a 20-year term.

The non-recourse project financing will be provided by 25 international and local commercial banks, and multiple Export Credit Agencies and multi-lateral agencies. The project is expected to reach financial close in the coming days, upon satisfaction of all relevant conditions precedent to the financing being achieved.


“Today’s announcement is a major achievement for Northland, our partners and the Baltic Power project,” said Mike Crawley, President and Chief Executive Officer of Northland. “This milestone demonstrates the support from the global financial community and reflects their confidence in Northland and our ability to develop, procure, construct and finance large and complex offshore wind projects. Despite the recent challenges for the offshore wind sector in some markets, Northland continues to find a way to advance large-scale offshore wind projects with attractive economics.”
“This financing is Northland’s first offshore wind project in Poland,” said Pauline Alimchandani, Northland’s Chief Financial Officer. “We would like to thank all stakeholders for working together to achieve this significant milestone. Once operational, Baltic Power will be Northland’s fourth offshore wind project in Europe and will provide significant high quality, inflation-protected, long-term contracted Adjusted EBITDA and Free Cash Flow to our business and shareholders.”


Northland has been co-developing Baltic Power with Orlen, since acquiring a 49 per cent equity stake in the project in 2021. The project financing amount of $5.2 billion represents 80 per cent of Baltic Power’s $6.5 billion projected total capital cost (inclusive of contingencies). The remaining capital will be contributed by the project partners at financial close and has already been secured. Northland’s share of equity for the project was fully secured through the green hybrid bond issuance in June 2023 and existing corporate liquidity. Northland’s interest in Baltic Power is expected to generate a five-year average Adjusted EBITDA (a non-IFRS measure)1 of approximately $300 to $320 million and $95 to $105 million of Free Cash Flow (a non-IFRS measure)1 per year once operational, delivering significant long-term cash flow for the Company’s shareholders.



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