The £2.6 billion (US$3.78 billion) Beatrice Offshore wind farm Ltd (BOWL) project has been given the green light for construction by owners after the project reached financial close.
The project, which will be funded with 60 percent debt, will be one of the largest private investments ever made in Scottish infrastructure.
Project financing includes £1,678 million in senior debt from commercial banks, EKF the Danish Export Credit Agency and the European Investment Bank for transmission and generation assets. £525 million 19 year long-term European Investment Bank loan. The remaining has been provided by EKF. Additionally, Copenhagen Infrastructure II K/S has provided £70 million in senior debt.
The group of 13 commercial banks providing senior debt consists of Lloyds Bank Plc, Societe Generale SA, KfW, Royal Bank of Scotland Group Plc, Commonwealth Bank of Australia, Banco Santander SA, Sumitomo Mitsui Banking Corp, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas SA, Natixis SA, Siemens Bank GHmbH, ING Groep NV, and CaixaBank SA.
(Updates names of banks and details on financing in paragraphs 13 and 14.)
The wind farm is owned by SSE (40%), Copenhagen Infrastructure Partners (CIP) (35%) and SDIC Power (25%).
The 588 MW, 84 turbine project, situated in the Outer Moray Firth, will use a new generation of Siemens 7MW Wind Turbines with 154-meter diameter rotor blades.
The wind farm project was consented by the Scottish Government in March 2014 and granted an Investment Contract by the UK Government in May 2014.
Christina G. Sorensen, Senior Partner in CIP, said:
“CIP’s investment in Beatrice represents one of the largest commitments from a financial sponsor to an offshore wind project, and follows our investment in the German offshore wind project Veja Mate in June 2015. CIP has a long track record in offshore wind and in accordance with our investment strategy, we decided to enter the project in the late development phase in November 2014. Thereby CIP has been able to actively engage in the sourcing strategy and contract execution where the fundamental risk profile of the project is decided.”
“CIP’s ambition is to be a proactive financial investor and project partner in the development, construction and operations phase. The project will deliver clean, green and affordable renewable energy based on a stable investment contract price and a 15 year inflation linked revenue stream. It’s a great project with very capable partners and SSE as the experienced operator, and we look forward to continue the cooperation in the many years to come.”