Legal & General supports Walney Extension with GBP 300m in debt

Author: Images Money. License: Creative Commons, Attribution 2.0 Generic.

November 20 (Renewables Now) - Legal & General (LON:LGEN) has provided nearly GBP 300 million (USD 397m/EUR 337m) in long-term debt to back the recent acquisition of a 50% stake in the 659-MW Walney Extension offshore wind project by Danish pension funds.

The UK financial services group said in a statement today that this is its first debt investment into the British offshore wind sector and its second largest infrastructure debt investment. The transaction saw LGIM Real Assets providing both commercial debt and Export Credit Agency (ECA) wrapped debt, while acting as an anchor investor. It financed the deal on behalf of clients, including Legal & General Retirement (LGR).

“We have a strong appetite for future investments into this sector as well as other renewable sectors, recognising the importance the offshore wind industry can have for providing clean energy and stimulating job growth in the UK,” said Charles-Henry Lecointe, Senior Investment Manager, LGIM Real Assets.

As announced earlier this month, Danish utility Ørsted A/S (CPH:ORSTED), formerly Dong Energy A/S, closed the sale of a 50% stake in the Walney Extension to pension funds PKA and PFA in a deal valued at GBP 2 billion.

The particular wind park is currently being built in the Irish Sea, about 19 km from the Walney Island coast in Cumbria. Upon completion in the second half of next year, the park’s 87 wind turbines will be generating enough power to supply over 500,000 homes a year.

(GBP 1.0 = USD 1.324/EUR 1.124)

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