By Our Business Correspondent, Scottish Financial News
Edinburgh-based Green Investment Bank and Japan’s Marubeni congomerate have refinanced part of their 50% shareholding in the 210 MW Westermost Rough offshore wind project.
The project is being developed by DONG Energy, which holds the remaining 50% equity in the project.
GIB and Marubeni bought their 50% equity stake in the project in March for £500m. The project, currently in construction off the coast of Yorkshire, will see the first commercial deployment, anywhere in the world, of Siemens 6 MW direct drive turbines.
GIB and Marubeni – which owns Smartest Energy – have now signed an agreement with a consortium of lenders who will provide £370m of limited recourse senior debt.
The lenders include the Japan Bank for International Cooperation; The Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank, Siemens Financial Services and France’s Societe Generale.
Ed Northam, GIB Head of Investment Banking, said: “In refinancing part of our 50% equity stake in the Westermost Rough project – we have brought in a number of new, long-term financiers to the sector.
“Increasing the number of long-term debt providers in offshore wind is critical in both ensuring there is sufficient capital to finance new construction projects and lowering the cost of capital for the sector.
“This is exactly the type of financial innovation needed to support the ongoing growth of the UK’s green economy.”