Zhong Neng reaches financial close

4C Offshore | Tom Russell
By: 08/12/2021 Zhong Neng

Developers of the
Zhong Neng offshore wind project, a joint venture between Copenhagen Infrastructure Partners (CIP) through its fund Copenhagen Infrastructure IV (CI IV) and China Steel Corporation (CSC), have reached financial close for the project.

Zhong Neng received approval of its local content plan in November 2019 from the Taiwan government and is to date the most localised offshore wind project in Taiwan. The project will utilise jacket foundations to be supplied by CSC’s subsidiary, Sing Da Marine Structures, and Vestas will provide 31 174-9.6MW turbines. The project is located next to CIP’s offshore wind farm, ChangFang and Xidao, which is currently under construction.  

The 298MW offshore wind farm will be financed through a combination of equity from CI IV and CSC and loans from a consortium of 20 banks. A total of approximately USD 1.6bn (NTD 45bn) in project financing was raised through a successful process.

CI IV is a 49% shareholder in
Zhong Neng , with the remaining 51% being owned by CSC. CSC and CIP have worked together on obtaining grid allocation in 2018 and entering into a 20-year PPA with the state-owned Taiwan Power Company in 2019. CSC and CIP will together lead the project through its construction phase with expected start of commercial operations in 2025.

MUFG and CTBC acted as joint Financial Advisors for the project debt financing. White & Case acted as legal advisor and Baker McKenzie as local legal advisor.