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Financial Close for Taiwanese OWF

February 23, 2020

Image: Copenhagen Infrastructure Partners

Denmark-based fund management company Copenhagen Infrastructure Partners (CIP) has reached financial close on the 589MW offshore wind project (OWF), Changfang and Xidao project off the coast of Changhua County, Taiwan.

CIP has reached financial close and start of construction of the Changfang and Xidao project. The project has contracted experienced international and local contractors under 8 key construction agreements.

The project received approval of its local content plan in December 2019 by the Taiwan government and is the offshore wind project with the highest localization percentage in the Asia Pacific region.

The Changfang and Xidao project will localize the jacket foundation, pin piles, onshore sub station, transport and installation contracts and more than 15 wind turbine components. The wind turbines will be supplied by MHI Vestas who will deliver 62 9.5MW turbines.

The 589 MW offshore wind farm will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions (including CI II, Taiwan Life Insurance and TransGlobe Life Insurance), as well as 6 export credit agencies. The total project financing raised from the banks and financial institutions amounts to approximately USD 3 billion (NT$ 90 billion).

CIP acquired the Changfang and Xidao project in 2017 and the project obtained grid allocation in 2018. In 2019, the project entered into a 20-year PPA with the state-owned Taiwan Power Company.

The Changfang and Xidao project is owned by CI II and CI III and a minority stake is owned by two local life insurance companies, Taiwan Life Insurance and TransGlobe Life Insurance. CIP will lead the project through its construction phase with expected start of commercial operations in Q1 2024.

“This project, besides being a remarkable project in Taiwan where it marks the continuation of the offshore wind build out, is part of leading the way for the complete APAC region going into offshore wind” said Anders Eldrup, CIP APAC Chairman

“Reaching financial close marks a major milestone for the Changfang and Xidao project and we are really excited about entering the construction phase of the project and will once commercial operation start provide clean energy to more than 600,000 households in Taiwan” said Michael Hannibal, CIP Partner.

MUFG acted as Financial Advisor and CTBC as the local Financial Advisor for the project debt financing. White & Case acted as legal advisor and Baker McKenzie as the local legal advisor. FIH Partners acted as Financial Advisor to CIP.

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