TRADE FINANCE: STEF
2019 offshore wind installation capacity by country
2% 6% 6% 18% 6.1 GW 29% 39%
China UK
Germany Denmark Belgium Taiwan
Forecast installations for key markets to 2024 (MW)
Market North America
Forecast installations (MW) 5,720
China (mainland) 19,000 Taiwan Japan
3,579 860
Vietnam
South Korea Total
1,100 560
30,819
Market outlook for cumulative installed offshore wind capacity in Taiwan (MW) 9,667 8,667 7,667 6,667 5,667 3,357 2,607 1,707 128 2019 237 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: GWEC, Global Offshore Wind Report 2020
Monopiles offloading at Mailiao Harbor, Yunlin, Taiwan. The Mailiao monopiles will be welded by Taiwanese company Formosa Heavy Industries
before the underlying transaction is confirmed, with the client bearing no liability or cost for the hedge should the transaction fall through.
Construction of the project is currently underway with foundations being laid, and it is scheduled to be completed by the end of 2021. The production of the foundations is split between local companies and suppliers in Europe.
When completed, Yunlin will be one of the largest wind farms in Taiwan and will provide ‘clean’ electricity to more than 450,000 Taiwanese homes, while offsetting 916,000 tonnes of CO2
emissions each
year. It will be home to 80 SG 8.0-167 DD offshore wind turbines manufactured by Siemens Gamesa Renewable Energy, and will be the first wind farm in the APAC region to use such turbines.
42
Changfang and Xidao After the success of Yunlin, the Deutsche Bank team continued the momentum, acting as mandated lead arranger and hedging bank for the 589MW Changfang and Xidao offshore wind farm. This time, the project owner was Copenhagen Infrastructure Partners (CIP) alongside two Taiwanese life insurance companies that held a minority share.
Closed in February 2020, this was another 18-year tenor large financing, to the tune of TWD90bn (€2.6bn), inclusive of commercial loans, ECA-covered loans, a decommissioning bond facility, a performance bond facility and a contractor guarantee facility. Lenders also had the comfort of a long-term fixed price offtake agreement with the state-owned Taiwan Power Company (TPC), ensuring future revenues could repay the loan.
The deal comprised equity and senior loans from a consortium of 25 international and Taiwanese banks and financial institutions (including CI-II, Taiwan Life Insurance and TransGlobe Life Insurance), as well as six export credit agencies, demonstrating increased confidence from ECAs in these projects. They comprised: • GIEK (Denmark); • NEXI (Japan); • EKF (Norway); • Atradius (Netherlands); • UKEF (UK); and • K-Sure (South Korea).
CIP had acquired the Changfang and Xidao project in 2017 and it obtained grid allocation the next year. In 2019, the project entered into a 20-year power purchase agreement with the TPC. Commercial operations are planned to start in Q1 2024, once the construction phase is complete.
3,707
10,667
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