British offshore wind energy company DONG Energy has supported its partner OPW to obtain refinance for the purchase of a minority stake in Walney Offshore Windfarms in England, UK.
A senior debt financing of £224m was obtained from a five-bank consortium that includes the UK Green Investment Bank, which provided about £45m – making its first transaction in the British offshore wind sector.
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UK Green Investment Bank CEO Shaun Kinsgbury noted that UK offshore wind sector is a priority sector for the bank.
"Walney was particularly attractive as it ensures that capital is recycled in the marketplace, delivers a commercial return to the bank and reduces carbon emissions in the UK," Kinsgbury said.
OPW, a joint venture between Dutch pension fund PGGM and renewable energy investor Ampere Equity, had completed the acquisition of 24.8% stake in the 367MW offshore wind projects from DONG in December 2010.
The Walney I and II wind farms are fully commissioned and have been fully operational since July 2011 and June 2012 respectively.
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By GlobalDataThese projects comprised of 51 Siemens 3.6MW wind turbines and are located 14km off the North West Coast of England.
DONG Energy asset manager Mads Anderson commented that this financial close highlights the attractive qualities of these long term, stable assets for financial investors.
"We are delighted that Walney was the first offshore wind project to benefit from the support of the UK Green Investment Bank," Anderson added.
"Walney wind farm was the first project in the UK to be backed by institutional investors before it was built."
