Deutsche Bank Leads Financing for AsiaPac’s Largest Offshore Wind M&A Deal
Deutsche Bank announced today that it acted as mandated lead arranger and sole hedge arranger for the financing for the $2.7 billion acquisition of renewable energy company Ørsted’s sale of a 50% stake in the Changua 1 offshore wind farm to institutional investor Caisse de dépôt et placement du Québec (CDPQ), and Taiwanese private equity fund Cathay PE.
The deal, announced late last month, marks the largest ever Asia Pacific offshore wind M&A transaction, as well as the first time that Ørsted’s partnership model, previously used for European offshore wind financings, has been used for an offshore wind financing in Asia Pacific. Under the terms of the deal, the investors will receive a 50% ownership share in the project, and will fund 50% of the engineering, procurement and construction (EPC) costs for the wind farm, including generation and transmission assets. Ørsted will retain 50% share of the project, and will deliver long-term operations and maintenance (O&M) services to the project.
The 605 MW project is part of the 900 MW Greater Changhua 1 & 2a Offshore Wind Farm, currently under construction by Ørsted, 35-60 kilometers off the coast of Taiwan’s Changhua County. The company expects the projects to be complete in 2022. The projects are expected to be able to supply around 1 million Taiwanese households with green power.
Cynthia Chan, Chief Executive Officer and Head of Corporate & Investment Bank, Taiwan, said:
“The transaction is testament to the team’s ability to deliver a multi-jurisdictional suite of products across Global Credit Trading, Global Emerging Markets, Asia and Structured Trade & Export Finance with the support of the coverage, product and sales teams in Europe and Asia. It is our third large-scale project financing transaction in Taiwan’s offshore wind sector, evidencing our strength in the region, the sector and in our ESG credentials in Asia Pacific.”