UPDATE - EIB confirms GBP-82m loan for Humber Gateway link

The European Investment Bank (EIB) on Wednesday confirmed it will lend GBP 82 million (USD 109.6m/EUR 97m) for the purchase, operation and maintenance of the power transmission link for the 219-MW Humber Gateway offshore wind farm in the UK.

On the same day, German utility E.on SE (ETR:EOAN), which is the developer of the wind park, announced it has sealed a deal to sell the particular transmission assets to energy regulator Ofgem’s preferred bidders -- Balfour Beatty Plc (LON:BBY) and Equitix Ltd -- for GBP 162.9 million. In the UK, licences are awarded to separate Offshore Transmission Owners (OFTOs) to take responsibility for such links.

EIB will provide a 19-year loan to the consortium, which equals almost 50% of the eligible project costs. At the same time, Sumitomo Mitsui Banking Corp, Sumitomo Mitsui Trust Bank and Societe Generale are providing senior debt.

The Humber Gateway offshore wind park, consisting of 73 turbines, has been in full operation since May 2015.

(GBP 1.0 = USD 1.336/EUR 1.182)

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