Orsted is to offload a 50% stake in the 1400MW Hornsea 2 offshore wind farm to a consortium comprising AXA IM Alts and Credit Agricole Assurances. The transaction is valued at £3bn.
AXA IM Alts, on behalf of clients, and Crédit Agricole Assurances will then each own 25% of the project.
Their total stake in Hornsea 2 will be funded through a combination of equity and a senior multi-tranche staple financing package provided by 30 banks and including a covered tranche guaranteed by EKF, Denmark’s export credit agency.
The financing package was originated and structured by Orsted.
Hornsea 2 is currently under construction and will become the world’s largest offshore wind farm once commissioned later in 2022.
The transaction is expected to close in the second half of 2022 once the wind farm is fully commissioned and customary regulatory approvals are obtained.
Orsted deputy chief executive Martin Neubert said: “We’re delighted to partner with AXA IM Alts and Crédit Agricole Assurances, two world-leading financial institutions, which are committed to accelerate the transition to a carbon-neutral economy in line with the Paris Agreement – thereby supporting the urgently needed shift from fossil-based to renewable energy sources.”
Mark Gilligan, Head of Infrastructure Equity at AXA IM Alts, added: “Our investment strategy is all about decarbonisation, electrification, and digitalisation. These are central to the energy transition. Hornsea 2 allows us to play an important role in decarbonising and electrifying the United Kingdom.
“This landmark transaction aligns with our aim of acquiring, for our clients, utility-scale low-carbon essential businesses and being a long-term partner of choice for outstanding operators like Ørsted.”