Deutsche Bank has closed a deal contingent interest rate swap on TWD90 billion (US$2.98 billion) for the financing of the Changfang and Xidao offshore wind project off the coast of Changhua County in Taiwan.
The two wind projects with a combined capacity of 589 MW has achieved financial close in February 2019. The wind farms are currently developed by Danish fund management company Copenhagen Infrastructure Partners (CIP) in partnership with Taiwan Life Insurance and TransGlobe Life Insurance.
Deutsche Bank has acted as the sole pre-hedging and hedging coordinator for the deal contingent hedge. The bank is part of the 25 companies consortium that provided about US$3 billion in debt financing for the project.
The two wind farms will be built about 15 km off the coast of Changhua County. It will be equipped with 62 V174-9.5 MW turbines from MHI Vestas Offshore Wind. The projects are expected to be fully commissioned by 2024 and will operate under a 20-year power purchase agreement (PPA) with state-owned Taiwan Power Co.
