Deutsche Bank has closed a NT$90bn ($3bn) deal contingent interest rate swap for the construction of the 589MW Changfang Xidao offshore wind project in Taiwan.
The project is being developed and financed by an investment consortium led by Copenhagen Infrastructure Partners (CIP) in conjunction with two Taiwanese life insurers.
The developers hit financial close on the project in late February and Deutsche Bank said it was pleased to have successfully concluded the swap in the current economic climate.
“Deutsche Bank is pleased to have successfully closed this deal contingent interest rate swap during extremely volatile market conditions,” said Taiwan country chief and head of investment and corporate banking Cynthia Chan.
Deutsche Bank is also among 25 banks in the syndicate group of lenders to the project.
The deal is the German lender’s second interest rate swap for a Taiwanese offshore wind farm, following a deal at WPD’s 640MW Yunlin project last year.
“Deutsche Bank is extremely proud to deliver this innovative risk solution, particularly as it supports European investment in Taiwan’s emerging renewable energy industry,” Chan added.
“The next decades will see significant change as industries and economies transition for a low carbon world, and Deutsche Bank is pleased to play a role in supporting Taiwan’s journey to renewable energy.”
The project will feature 62 MHI Vestas V174 9.5MW turbines and is due online before 2024.