Over ten banks have agreed to provide a NTD 60bn (USD 2.05bn) credit line for Asia Cement Corporation’s (ACC) 450MW offshore wind farm in Taiwan, a spokesperson told Inframation.
The Taiwanese cement giant said its Chufeng Offshore Wind Farm secured the loan commitment from a group made up of Taiwanese state-owned and private-sector banks as well as foreign lenders.
“With the loan commitment from banks, we are able to show to the government that the project we propose will be well-financed,” the spokesperson said. “That will increase the chance of the project being selected,” she added.
The final capacity of the Chufeng Offshore Wind Farm will be determined by the Taiwanese authorities’ official selection process to be held in April.
Power grid connection has been confirmed with Taiwan’s state-owned utility Taiwan Power (Taipower). The project is scheduled to be completed by 2025.
It is located off the coast of Taiwan’s northwestern Hsinchu county, facing the wind-rich Taiwan Strait.
ACC decided to self-advise on the planned syndicated loan for the planned 450MW wind farm, the spokesperson said. She cited the company’s extensive connections with the local bank community.
“As we are under Far Eastern Group, which is a notable conglomerate in Taiwan, we would be able to benefit from our parent’s established ties with a number of domestic banks,” she said. “In comparison, foreign developers may have to appoint an FA that helps coordinate with local financiers.”
The spokesperson declined to disclose the banks which have agreed to provide the credit line.
The banks that will act as lead arrangers for the syndication are only likely to be finalised following the April selection. This will decide whether the project will be greenlit and the exact amount of money to be raised for the project.
To date, 20 applications for offshore wind farms with a combined capacity of 11GW have been submitted to the Bureau of Energy.
Projects that score the highest in the assessments will receive the feed-in tariff earmarked for the first 3.5GW capacity.
The remainder must participate in an auction for an additional 2GW capacity in which the firms that bid lowest will be allocated capacity.
Projects that pass the selection process will secure a PPA with Taipower.
Far Eastern, founded in 1937, is a finance-to-textile conglomerate boasting total assets of over NTD 2.5trn.