Export Finance Norway (Eksfin) has financed Nexans Norway’s new UK export cable contract with NOK 2bn (£155m) in loan guarantees.
"The transaction covers the export and installation of advanced high-voltage subsea cables for the Moray West wind farm off the coast of Scotland. Export Finance Norway (Eksfin)’s global portfolio of loans and guarantees covering Norwegian exports to offshore wind projects has swelled to NOK 15bn since 2019," Eksfin said.
Eksfin, a state-owned Export Credit Agency governed by the Ministry of Trade, Industry & Fisheries, promotes Norwegian exports through supporting Norwegian companies, overseas purchasers, and their banks with state-backed loans, guarantees, and skilled advisory services. Eksfin promotes sales contracts globally, infrastructure investments in Norway and other types of financial transactions that strengthen Norwegian value creation.
The Moray West wind farm off the east coast of Scotland is owned by Ocean Winds, the offshore wind joint venture between ENGIE and EDP Renewables.
The offshore wind farm will feature 60 turbines and installed capacity of 882 MW by 2025 – equating the energy demand of 1.33 million UK homes and emissions reduction of 1.1 million tonnes of CO2.
Ocean Winds holds a portfolio of 16.6 GW of gross capacity of offshore wind energy from 15 projects in operation, construction and secured development in 7 countries, making the company one the largest developers of offshore wind globally and potentially a very important customer for Norwegian exporters in this sector, Eksfin said.
The Moray West contract markedly strengthens Nexans Norway’s position in this market, Eksfin added. Nexans will manufacture the cables at its factory in Halden and install them using its own dedicated cable layer vessels.
"Offshore wind projects typically demand more capital than developers and their banks can finance on their own. State-backed guarantees from Eksfin carry the highest AAA credit rating and make it easier for private banks to provide financing. In this project, Eksfin is working with a large loan syndicate where Crédit Agricole CIB acts as financial advisor and arranger of the loan facilities to Moray West," Eksfin said.
Eksfin financing is premised on developers choosing deliveries from Norwegian suppliers.
“Financing Norwegian deliveries to international offshore wind projects is a key strategic priority for us. I am happy that, together with Nexans, we have succeeded in securing yet another big export contract for Norwegian wind industry in this important market,” said Eksfin managing director Tone Lunde Bakker.
"The transaction also strengthens our relationship with Ocean Winds, one of the world’s leading offshore wind developers. We would like to help many more Norwegian suppliers win business in these kinds of renewable energy projects. It’s good for business and good for the planet,” she added.
“Having Eksfin on our team and being able to offer financing and loan guarantees to our customers is a major strength and competitive advantage in our export activities”, said Nexans Norway managing director Ragnhild Katteland.
The Moray West wind farm is 95% owned by Ocean Winds and 5% by Ignitis. Eksfin is providing NOK 2 billion in loan guarantees to the project linked to the Norwegian delivery. Eksfin is working with a loan syndicate comprising 20 banks, where Crédit Agricole CIB is the arranger.