DONG Energy signed an agreement to divest 50% of the 330 MW German offshore wind construction project, Gode Wind 1, to Global Infrastructure Partners (GIP) for a total of approximately US$884 million (€ 780 million), which will be paid in the period 2015 to 2016.
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Image from DONG. |
As a part of the transaction, GIP will issue a rated project bond to a consortium of German insurance companies with Talanx. The development of a rated bond structure that facilitates the provision of institutional debt to offshore wind construction projects was initiated and led by DONG Energy and implemented with the strong support from GIP and Talanx. This transaction marks the issuance of the first non-recourse, investment grade, certified green bond dedicated to part finance an offshore wind farm asset under construction.
The transaction is subject to approval by the competition authorities and is expected to be completed in 2H 2015.
'The parties have agreed that DONG Energy will finalize the construction of the Gode Wind 1 offshore wind farm project, and will provide operation and maintenance services to Gode Wind 1 from its O&M base in Norddeich in Germany.
Furthermore, the parties have agreed that DONG Energy will provide a route to market for the power production from Gode Wind 1.
Earlier this year, DONG Energy started the offshore construction works for the Gode Wind 1 offshore wind farm. The 330 MW wind farm will consist of 55 turbines from Siemens, which in total will be able to supply CO2-free power corresponding to the annual power consumption of approx. 340,000 German households. The wind farm and the neighboring wind farm Gode Wind 2 are expected to be fully commissioned in 2016.
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