Ørsted signs USD-805m revolver for 900-MW Taiwanese offshore wind project
Loan signing ceremony for the Greater Changhua projects. Image by: Ørsted (www.orsted.tw).
Danish energy major Ørsted A/S (CPH:ORSTED) has secured a TWD-25-billion (USD 804.9m/EUR 712.9m) revolving credit facility to back the 900-MW Greater Changhua offshore wind project cluster in Taiwan.
The company announced on Thursday it has signed the five-year green loan with a syndicate of 15 banks, among which are all eight Taiwanese state-owned lenders. The list of private banks that took part in the transaction includes BNP Paribas, CTBC Bank, KGI Bank and Deutsche Bank AG, among others.
The revolver will be used for the Greater Changhua 1 and 2a projects, which will be built off Taiwan’s Changhua County in 2021 and 2022, respectively. The Danish offshore wind major took a final investment decision (FID) on the schemes in April.
Ørsted plans to finance 50% of the Greater Changhua cost by capital contributions from the Ørsted Group and debt from Taiwanese financial institutions, which will be backed by a Ørsted A/S parent company guarantee. Additionally, it plans to launch a green bond sale in Taiwan towards end-2019.
Commenting on the financing deal, Allan B Andersen, senior vice president for treasury & risk management at Ørsted, said this is the company’s first green loan in Taiwan that backs its goal of funding all of its projects “in the green format.”
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.