Ørsted brings Canadian pension fund, Taiwan banks in Greater Changhua 1 Offshore Wind Farm

Global institutional investor CDPQ and experienced local investor Cathay PE will co-invest 50 percent of the 605MW Greater Changhua 1 Offshore Wind Farm. (Courtesy of Ørsted)

TAIPEI (The China Post) — Ørsted announced Monday that it has signed an agreement with a consortium of world-leading investors, which consists of global institutional investor Caisse de dépôt et placement du Québec (CDPQ) and established local investor Cathay PE, to co-invest in the 605MW Greater Changhua 1 Offshore Wind Farm (Greater Changhua 1).

CDPQ and Cathay PE will jointly own 50 percent of the Greater Changhua 1 and Ørsted will retain a 50 percent share. The majority of the deal, which amounts to approximately NT$75 billion (US$2.67 billion), will be used to pay for the EPC services for Greater Changhua 1.

The 50-50 partnership is the first of its kind in the APAC offshore wind sector and will help stimulate further opportunities in the Taiwanese market for offshore wind.

The partnership is based on a financing model for offshore wind projects that is unique in the Asia-Pacific Region. The transaction is still subject to all customary and regulatory approvals by Taiwanese authorities.

Greater Changhua 1 is part of the 900MW Greater Changhua 1 & 2a Offshore Wind Farms, which Ørsted is currently constructing and expects to be completed in 2022.

CDPQ and Cathay PE will acquire a 50 percent share of the Greater Changhua 1 via a multi-tranche financing package from 15 international and local banks and two local life insurance companies: Cathay United Bank, CTBC Bank, E-SUN Bank, Taipei Fubon Bank, Cathay Life Insurance Co., Taiwan Life Insurance Co., BNP Paribas, Crédit Agricole, Deutsche Bank, DZ Bank, HSBC, Oversea-Chinese Banking Corporation, Korea Development Bank, Siemens Bank, Société Générale, Standard Chartered and Sumitomo Mitsui Banking Corporation.

The financing package, which was structured and led by Ørsted, will be partially supported by guarantees and/or loans from five international export credit agencies (ECAs); Eksport Kredit Fonden (EKF) of Denmark, UK Export Finance (UKEF), Atradius of the Netherlands, Korea Trade Insurance Corporation (KSURE), and Export Development Canada (EDC), which participates for the first time in an offshore wind farm deal in Taiwan.