The First two phases of the world's largest offshore wind farm in UK reaches financial close
Dogger Bank Wind Farm owners, SSE Renewables and Equinor, have announced the financial close on the first two phases of the project (Dogger Bank Wind Farm A & B), representing in aggregate the largest offshore wind project financing to date globally. With a capacity of 3.6GW, Dogger Bank will be the largest offshore wind farm in the world when operational.
The project is being built in three 1.2GW phases, with the first two phases being constructed at the same time to maximise the synergies resulting from their geographical proximity and make use of common technology and contractors. As such, the two phases are being financed concurrently with all lenders participating in each phase in equal proportions.
With the strong interests from lenders, Dogger Bank A and B were able to secure competitive terms, despite unprecedented economic circumstances arising from the global coronavirus pandemic. The final group of lenders, comprising 29 banks and three export credit agencies.
Dogger Bank A and B will each require total capital expenditure of around GBP3 billion (USD 4 billion), including an offshore transmission capex of around £800m per phase. The total senior debt facilities across the two phases is GBP4.8 billion (USD 6.4 billion), plus ancillary facilities of around GBP0.7 billion (USD 0.9 billion). Dogger Bank A and B are being project financed with gearing of between 65% and 70% for the generation assets. Gearing on the transmission facilities is set at 90% of the forecast OFTO sale proceeds.
The third phase, Dogger Bank C, is being developed on a different timescale with financial close to follow at a later stage.
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