The UK Green Investment Bank (GIB) and Japan’s Marubeni Corporation (Marubeni) have today refinanced part of their 50% shareholding in the 210 MW Westermost Rough offshore wind project. The project is being developed by DONG Energy, who hold the remaining 50% equity in the project.
GIB and Marubeni have signed an agreement with a consortium of lenders who will provide c. £370m of limited recourse senior debt. The lenders include the Japan Bank for International Cooperation; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Mizuho Bank, Ltd.; Siemens Financial Services and Societe Generale Corporate & Investment Banking’.
Financial close is expected to take place in the next few weeks.
GIB and Marubeni announced their purchase of a 50% equity stake in the project on 31 March 2014 for c. £500m. The project, currently in construction off the coast of Yorkshire, will see the first commercial deployment, anywhere in the world, of Siemens 6 MW direct drive turbines.
Ed Northam, Head of Investment Banking at GIB said:
“This is an important transaction in the development of offshore wind in the UK. In refinancing part of our 50% equity stake in the Westermost Rough project – jointly held with Marubeni – we have brought in a number of new, long-term financiers to the sector. Increasing the number of long-term debt providers in offshore wind is critical in both ensuring there is sufficient capital to finance new construction projects and lowering the cost of capital for the sector.
“This is exactly the type of financial innovation needed to support the ongoing growth of the UK’s green economy.”
