Financial close reached for Galloper Offshore Wind Farm

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Financial close reached for Galloper Offshore Wind Farm

RWE Innogy has announced three new project partners and financial closure for the Galloper offshore wind farm, located 27 km off the coast of Norfolk, UK.

This announcement comes after SSE agreed exit terms with 50:50 joint venture partner, RWE Innogy for its interest in the project. 

UK Green Investment Bank (GIB), Siemens Financial Services and Macquarie Capital, join RWE Innogy in becoming 25% joint equity partners of the 336 MW Galloper Offshore wind project. As part of the overall partnership agreement, Siemens will supply and install 56 Siemens SWT-6.0-154 turbines for the project and deliver a 15 year maintenance contract. 

The total project investment is estimated at £1.5 billion (US$2.3 million). A consortium of 12 commercial banks and the European Investment Bank  provides the £1.37 billion (US$2.11 billion) debt facilities. BNP Paribas acted as financial advisor to the project.

The 12 commercial banks include:  ABN AMRO Bank; BNP Paribas; Crédit Agricole Corporate and Investment Bank; ING Bank ; Landesbank Hessen-Thüringen Girozentrale; Lloyds Bank plc; Natixis, London Branch; Santander Global Banking & Markets; Skandinaviska Enskilda Banken; Societe Generale; Sumitomo Mitsui Banking Corporation; The Bank of Tokyo-Mitsubishi UFJ.

The Galloper project which will be located close to its existing sister project Greater Gabbard off the Suffolk coast, was awarded development rights by The Crown Estate in May 2010 and will commence operations by March 2018.

Hans Bünting, CEO of RWE Innogy said:  

"Today's announcement is the culmination of many months of successful negotiations with our partners and investors and shows that the UK is still a strong market for offshore renewables. Siemens, as well as becoming a project partner will also, through their technical division, support key aspects of the project including turbines, turbine installation and maintenance support. We welcome GIB, with their experience of supporting renewables ventures and their substantial knowledge of offshore wind financing, back to another offshore partnership, their first ever equity investment being a stake in our Rhyl Flats project. Macquarie Capital bring considerable international business and finance acumen as well as a strong track record advising and investing in infrastructure and energy projects globally. I look forward to working together to utilise our collective experience and expertise to realise the successful construction of Galloper wind farm."

Wolfgang Bischoff, Head of Energy Finance EMEA at Siemens Financial Services said:

"Again we will work alongside some of the offshore wind industry's most experienced players on a project that will make a significant contribution to the UK's renewable energy goals. Achieving financial close quickly was an essential component for Galloper to remain on-track in regards to construction as well as becoming operational in time to qualify from the government's Renewable Obligation Certificate subsidies. The speed in which it was achieved owes much to the hard work of our project partners, as well as the strong market confidence in Siemens' technical and financial experience in this sector."

Ed Northam, Head of Investment Banking, UK Green Investment Bank, said:

"This is another significant milestone in the development of the UK offshore wind industry in a year that has already seen two major projects come online and construction commence on another. The transaction reinforces our relationship with RWE and further highlights the impressive list of companies that are investing in the sector. It is the second investment in offshore wind that GIB has made at FID in the space of six months, demonstrating the role that we continue to play in making sure that complex but important green infrastructure projects can proceed."

Mark Dooley, Head of Infrastructure, Utilities and Renewables, Macquarie Capital Europe said: 

"Macquarie Capital is delighted to partner with RWE Innogy, Siemens and GIB on Galloper  Offshore Wind project.  This investment demonstrates our commitment to the European offshore wind sector as part of our strategy to invest alongside clients in energy and infrastructure transactions.


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