World’s largest offshore wind project hits financial close

27 November 2018 - 12:00 am UTC

Orsted has closed the sale and stapled debt financing of a 50% stake in the 1.2GW Hornsea 1 project, the largest offshore wind project in the world.

The Danish wind giant has sold the shares in the UK North Sea project to Global Infrastructure Partners and has put in place a record-breaking GBP 3.5bn staple financing package to support the GBP 4.46bn acquisition.

Legal & General Investment Management Real Assets confirmed that it is one of the institutional funds that has underwritten the finance package, as reported by Inframation’s sister publication SparkSpread on 20 September.

LGIM has provided GBP 370m in long-term financing, echoing the GBP 320m financing it committed to support construction of the Walney Extension project in the Irish Sea.

“We are delighted to be investing in this project, the world’s largest offshore wind farm and the second offshore wind farm investment by Legal & General Retirement,” said Eleanor Bucks, managing director of direct investments and real assets at Legal & General Retirement.

Aviva Investors also announced it has committed GBP 400m of fixed-rate and inflation-linked bonds to the project.

It too committed a smaller package of GBP 165m to Walney Extension last year.

“We continue to have strong appetite for future investments within this sector, seeking opportunities that meet our clients’ investment requirements,” said Daryll Murphy, head of infrastructure debt at Aviva Investors.

The institutional debt club is understood to also include Barings, BlackRock, Macquarie Infrastructure Debt Investment Solutions, Metlife, Public Insurance Corporation, Vantage Infrastructure and Westbourne Capital.

The banks are understood to include MUFG Bank, BNP Paribas, Credit Agricole, ING, KfW IPEX-Bank, Lloyds Banking Group, Santander, Siemens Bank, Societe Generale, Sumitomo Mitsui Banking Corp. and Royal Bank of Scotland.

Riskbridge Associates acted as sole hedging and liquidity to Orsted on the transaction.

 

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