Northland Power’s 1GW Hai Long offshore wind project in Taiwan has signed a credit agreement to secure NT$118bn in financing.
The long-term over 20-year non-recourse financing is worth around $3.67bn, while a weighted average all-in interest cost for the term of the deal is expected to be approximately 5%.
The non-recourse project financing will be provided by over 15 international and local lenders with support from multiple Export Credit Agencies (ECAs) from six different countries.
The project is expected to reach financial close shortly, upon satisfaction of all relevant conditions precedent to the financing being achieved.
Hai Long’s total cost is projected to be approximately $9bn, with funding from its $5bn of non-recourse debt by the project lenders, approximately $1bn of pre-completion revenues, and the remaining equity investment contributed by the development’s partners.
Upon the achievement of financial close, total debt and equity required for the site are expected to be fully funded, which includes future cash flows expected to be received from sell-down proceeds and pre-completion revenues.
Hai Long is located approximately 45km-70km off the Changhua coast in the Taiwan Strait and consists of two phases, Hai Long 2 and Hai Long 3, with an expected combined generating capacity of 1022MW.
The project has obtained all environmental approvals and its major construction permit and has commenced with early construction work and fabrication for components. Completion of construction activities and full commercial operations are expected in 2026/2027.
Northland president and chief executive Mike Crawley stated: “We are progressing yet another world-class offshore wind project despite a challenging market environment. The project will produce high quality and stable cashflow over a 30-year period with further optimisation opportunities.
“Offshore wind is necessary to meet global renewable energy demand in the years ahead and Northland is one of the few companies able to originate, develop, finance, construct, and operate such facilities.”