Orsted has secured a NTD25bn (€714m) five-year loan facility for its Greater Changhua offshore wind farms off the coast of Taiwan.
The facility was provided by 15 banks, including eight Taiwanese government-owned entities.
They are: Bank of Taiwan, Mega International Commercial Bank, Chang Hwa Commercial Bank, Land Bank of Taiwan, Taiwan Cooperative Bank, First Commercial Bank, Hua Nan Commercial Bank, Taiwan Business Bank, BNP Paribas, Cathay United Bank, E Sun Commercial Bank, Taishin International Bank, CTBC Bank, KGI Bank and Deutsche Bank.
Bank of Taiwan, BNP Paribas and Cathay United Bank were the mandated lead arrangers.
Orsted said it will fund 50% CAPEX of the Greater Changhua projects by capital contributions from the company, combined with debt capital sourced from local Taiwanese financial institutions backed by a Orsted parent company guarantee.
It added that the company will now start the preparations for a potential green bond issuance in the local market towards the end of this year.
Orsted senior vice president for treasury and risk management Allan Andersen said: “We are very pleased with the commitment from 15 banks on this transaction, especially the domestic Taiwanese banks.
“We are proud of this being the first ever green loan facility in Taiwan under our new Green Finance Framework which matches our ambition of doing all of Orsted’s financing in the green format.”
Orsted Asia Pacific President Matthias Bausenwein said: “This green revolving loan facility provides local financial institutions with an opportunity to tap into the offshore wind industry and boost their confidence in financing offshore wind projects.
“This is a significant step forward, to bring clean energy to the people in Taiwan. A step jointly taken by Orsted and local financial institutions.”
Taiwan, as well as other emerging markets, will be on the agenda of RenewableUK’s Global Offshore Wind conference and trade fair in London next week.