Ørsted plans to finance the Greater Changhua offshore wind projects by capital contributions from the Ørsted Group combined with debt capital sourced from local Taiwanese financial institutions.
Ørsted said it will finance the projects directly on the balance sheet by obtaining substantial local TWD debt from local banks and institutions.
In addition, the company will use the partnership model to further enhance the opportunities for Taiwanese financial and institutional investors to become long-term partners with Ørsted in the projects.
Leveraging its experience as a corporate bond issuer and from the existing Green Bond Framework, Ørsted has been in dialogue with the Taiwanese banks, the Taipei Exchange and the financial authorities on this matter.
“We are very committed to the Taiwanese offshore wind market and are interested in engaging in long-term partnerships with local companies,” Marianne Wiinholt, Chief Financial Officer of Ørsted, said.
“With 50.1% shares owned by the Kingdom of Denmark, Ørsted’s corporate balance sheet and Investment Grade credit rating of BBB+/Baa1 demonstrate that we have the financial capabilities necessary to successfully develop, construct, operate and own world-class wind farms in Taiwan.”
According to Matthias Bausenwein, Ørsted’s General Manager for Asia Pacific, if the company is successful in the grid allocation, the four Greater Changhua projects will require total investments of approximately TWD 380 billion (approximately EUR 10.5 billion), from which a substantial part will be direct investments in developing a local supply chain to support the development, construction and operations of the projects benefitting the local communities.
The Greater Changhua projects include four sites located 35 to 60km off the Changhua coast, with the total capacity expected to be 2.4GW.
Taiwan’s Environmental Protection Administration recently concluded the review process and approved the Environmental Impact Assessment (EIA) for the projects.