UK Export Finance supports financing deal which will secure UK
contracts for cable protection systems and the charter of an
installation vessel.
UK Export Finance (UKEF) has, along with other export credit
agencies, supported a financing deal for a Taiwanese offshore
wind farm which will generate major UK
contracts.
Offshore wind developer Ørsted will construct the Greater
Changhua 4 Offshore Wind Farm under an engineering, procurement
and construction (EPC) contract. UK subcontractors are expected
to deliver contracts for cable protection systems and the charter
of an installation vessel.
UKEF supported by issuing guarantees for £168 million in debt
financing which will be provided by commercial lenders. The
department issued the guarantee under its Buyer Credit facility on the
condition that Greater Changhua 4 procures from the UK supply
chain.
The financing package was originated and structured by Ørsted on
behalf of Cathay Life, which is set to acquire a 50% ownership
share of Greater Changhua 4 in a transaction with a total value
of around DKK 11.6 billion ($1.6 billion). UKEF was one of six
export credit agencies to support the transaction with financial
guarantees.
UKEF previously guaranteed financing for Ørsted's Greater
Changhua 1 Offshore Wind Farm, which is now in full operation at
605 MW. The full complex of wind farms making up the 1.82 GW
Greater Changhua offshore wind cluster can produce energy whose
effect is equivalent to a total reduction of 3.5 million tonnes
of carbon dioxide annually.
Tim Reid, CEO of UK Export Finance,
said:
This deal shows UK businesses are valued worldwide as an
important part of the renewable energy supply chain. By working
with global partners to deliver deals like this, UKEF ensures
that these businesses can access even more opportunities at the
cutting edge of the energy transition.
Unlocking finance for the energy transition remains a top
priority for UKEF and will support our long-term plan for
sustainable growth.
Rasmus Errboe, Deputy CEO and Chief Commercial Officer at
Ørsted, said in Ørsted's statement:
We're pleased to apply our partnership model in Asia Pacific once
again and advance the development of offshore wind in the region
with Cathay, with whom we have great collaboration experience.
We're satisfied with the transaction as it represents another
important milestone in our partnership and divestment programme
and ensures further progress towards our mid- and long-term
targets.
Export credit is a public financing tool which supports
investment in clean energy industries and other growth-driving
sectors targeted by the UK's upcoming industrial strategy, to be
published in Spring 2025.
This is the fifth time that UKEF has backed a major Taiwanese
offshore wind project, securing export opportunities in a major
market for renewable energy technology.
