KfW IPEX-Bank and Societe Generale finance Hornsdale Wind Farm in Australia

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KfW IPEX-Bank and Societe Generale finance Hornsdale Wind Farm in Australia

Neoen, John Laing and Megawatt Capital Investments have achieved financial closure for the first 100 MW phase of the Hornsdale Wind Farm 200 km north of Adelaide in South Australia

The wind farm will have a capital value of approximately A$285 million (US$208.2 million). KfW IPEX-Bank and Societe Generale have provided a long-term debt financing package worth A$195 million.

The sponsors have also signed contracts with Siemens for the supply of turbines, and the construction and long-term operation and maintenance of the project. Herbert Smith Freehills has advised on all aspects of the project including the long-term project finance debt facility, project planning, land access arrangements, construction, long term maintenance arrangements, grid connection and corporate structuring.

The project is underpinned by a 20-year contract to sell power to the ACT.

Construction of the wind farm will commence immediately. Once fully operational, it will provide 20% of the power needs of the ACT and move the Territory closer to realising its target of having 90% of its electricity supplied by renewable sources by 2020.

Andrew Clark, Head of Projects Australia and Asia at Herbert Smith Freehills, said:

“This is truly ground-breaking transaction for a number of reasons. Being the first windfarm in Australia for Neoen and the lender group, it’s great to see new international investors entering the renewables market in Australia at this time.”

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