Equinor and partner reach financial close on 1.2 GW Dogger Bank C offshore wind farm

Dogger Bank wind farm owners, Equinor and SSE, have has achieved financial close on the third phase of the project, Dogger Bank C. The terms achieved are some of the best ever for a construction offshore wind project in the UK.

The total senior debt facilities are GBP2.5 billion (US$3.3 billion), plus ancillary facilities of around GBP0.4 billion (US$529 million). Dogger Bank C is being project financed with a gearing of approximately 70% for the generation assets. Gearing on the transmission facilities is approximately 90% in anticipation of Offshore Electricity Transmission (OFTO) sale post-construction.

With the strong interest from lenders, Dogger Bank C was able to secure highly competitive terms, despite the continued impact of the coronavirus pandemic on the macroeconomic environment. The final group of lenders, comprising 28 banks and 3 export credit agencies, includes experienced leaders in the sector, many of which are relationship lenders of both SSE and Equinor. The majority of lenders were the same as for Dogger Bank A and B.

Equinor and SSE announced in November that Eni has entered into an agreement to purchase a 20% (10% each) interest in Dogger Bank C. Extended partner alignment will enable further synergies, both in the construction and operations phase of Dogger Bank wind farm.

Eni will enter the asset effective from the financial close of project financing. The farm down transaction is expected to close in the first quarter of 2022, subject to regulatory and lenders approvals and customary purchase price adjustments. Once the transaction is complete, the new overall shareholding in Dogger Bank C will be SSE Renewables (40%), Equinor (40%), and Eni (20%).