CIP reaches FC on 589 MW offshore wind in Taiwan

Copenhagen Infrastructure Partners (CIP) through its funds Copenhagen Infrastructure II (CI II) and Copenhagen Infrastructure III (CI III) has reached financial close on the 589 MW offshore wind project Changfang and Xidao off the coast of Changhua County, Taiwan.

The project has contracted experienced international and local contractors under 8 key construction agreements. The project received the approval of its local content plan in December 2019 by the Taiwan government and is the offshore wind project with the highest localization percentage in the Asia Pacific region. The wind turbines will be supplied by MHI Vestas who will deliver 62 9.5 MW turbines.

The 589 MW offshore wind farm will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions (including CI II, Taiwan Life Insurance and TransGlobe Life Insurance), as well as 6 export credit agencies. The total project financing raised from the banks and financial institutions amounts to approximately US$3 billion.

CIP acquired the Changfang and Xidao project in 2017 and the project obtained grid allocation in 2018. In 2019, the project entered into a 20-year PPA with the state-owned Taiwan Power Company. The Changfang and Xidao project is owned by CI II and CI III and a minority stake is owned by two local life insurance companies, Taiwan Life Insurance, and TransGlobe Life Insurance. CIP will lead the project through its construction phase with the expected start of commercial operations in Q1 2024.

“Reaching financial close marks a major milestone for the Changfang and Xidao project and we are really excited about entering the construction phase of the project and will once commercial operation start provide clean energy to more than 600,000 households in Taiwan” says Michael Hannibal, CIP Partner.

“Since we entered the Taiwan offshore wind market in 2017 we have worked intensively with Taiwanese companies and the government to build up the local supply chain and we are therefore proud to deliver the project with the highest extent of localization in Taiwan to date” explained CEO of Changfang Xidao, Jesper Krarup Holst.

MUFG acted as Financial Advisor and CTBC as the local Financial Advisor for the project debt financing. White & Case acted as legal advisor and Baker McKenzie as the local legal advisor. FIH Partners acted as Financial Advisor to CIP.