MUFG Bank has pledged its support to finance Taiwan’s offshore wind plants and development of other infrastructure assets.
The Taiwan branch of the Tokyo-based lender, first launched in 1994, has made it a key strategy to beef-up its lending to the island’s burgeoning offshore wind sector, a spokesperson told Inframation Thursday (10 January).
The lender is also keen on financing other infrastructure projects in Taiwan, including those that are of strategic importance to the country, she added.
“We are mainly serving Japanese clients and helping with their business on the island,” she said, yet adding that the bank has also been involved in syndicated loans for offshore wind projects developed by non-Japanese firms.
The Japanese Bank made the remarks at a time when a lower government suggested that the offshore wind FiT for 2019 has led to a backlash among some developers, including Orsted, that has halted and decided to revisit all its project activities.
MUFG Bank is the first Japanese bank to have taken part in the 16-year NTD 18.7bn (USD 607m) syndicated loan to back Taiwan’s first offshore wind project – the 128MW Formosa I project. MUFG joined a group of 11 banks including ANZ, BNP Paribas and Credit Agricole, backing the second phase 120MW development of the project, which reached financial close in June 2018. The lender committed USD 19.38m to the loan.
The Taiwan unit of the MUFG Bank is closely cooperating with other companies under the MUFG Financial umbrella when it comes to lending opportunities involving offshore wind and other infrastructure projects in Taiwan.
MUFG is already an active lender to offshore wind projects in Europe. It is among the group of 16 banks and institutional lenders that a Macquarie-led consortium has lined up for the 573MW Rac Bank offshore wind farms.