RWE has raised a €1bn debt package which it will use to partly replace existing financing for the 342MW Kaskasi offshore wind farm and its 1.4GW Sofia wind project in the UK North Sea.
The funds have been raised from German bank BayernLB and Denmark’s Export Credit Agency EKF.
RWE had mulled raising project finance for both offshore wind farms in recent years but eventually decided to pursue construction of both wind farms on its balance sheet.
Located 35km north of the German island Heligoland in the North Sea, Kaskasi is due to be completed by the end of this year.
Onshore works have meanwhile started for Sofia but the offshore campaign to install 100 turbines 195km from the UK coast at Dogger Bank has yet to launch. Operations are planned for 2026.
RWE was able to access finance under EKF’s direct loan program because of Danish equipment it is using for the wind farms.
The overall funding has a high degree of flexibility with fixed and floating rates, according to RWE. It incorporates a €500m short term facility.
Johannes Anschott from BayernLB said: “BayernLB is pleased to structure this tailor-made transaction in cooperation with EKF and RWE. This innovative deal is an outstanding example for our clear dedication to the green transition and renewable energy.”
Michael Müller, CFO of RWE, added: “RWE is investing heavily in the energy transition. In line with our ‘Growing Green’ strategy, we aim to expand our high-performance and environmentally friendly power generation capacity to 50 GW worldwide by 2030. The financing provided by BayernLB and EKF diversifies our funding sources by adding a commercially attractive, replicable financing instrument to support our significant growth ambitions.”
The lenders were advised by law firm Dentons on the transaction.