Ørsted Secures Project Financing for Greater Changhua 2 Offshore Wind Farm

Ørsted successfully reached financial close for Greater Changhua 2 project financing, with strong support from both international and domestic banks, including all eight Taiwanese state-owned banks, as well as multiple export credit agencies.

Ørsted has reached financial close on a project finance package with 25 banks and 5 Export Credit Agencies (ECAs) to raise approximately TWD 90 billion (about DKK 20 billion) for the 632 MW offshore wind farm Greater Changhua 2.

This is part of the financing structure for the project, on which Ørsted simultaneously is progressing as planned with an equity divestment expected to be completed once the project is operational. The transaction ensures further progress on both Ørsted's partnership and divestment programme and its strategic priorities.

Greater Changhua 2 has a total installed capacity of 632 MW, comprising the operational Greater Changhua 2a and the under-construction Greater Changhua 2b, which is scheduled for completion and grid connection by the end of 2025.

Located approximately 50-60 km off the coast of Changhua County, Taiwan, Greater Changhua 2 is a 632 MW offshore wind farm that is comprised of both Greater Changhua 2a, which is operational, and Greater Changhua 2b, which is currently under construction and is expected to be commissioned towards the end of 2025.

Trond Westlie, Group CFO of Ørsted, says: "We've received very strong support from both international and local banks and export credit agencies for the project financing of Greater Changhua 2. This shows that there is a healthy appetite for premium assets with robust contractual structures, and it's a clear sign that we're working diligently to deliver on our divestment and partnerships programme. While funding of Ørsted's activities primarily has been undertaken at the group level, we have extensive experience in structuring financing packages on behalf of incoming partners. This transaction is another important step forward for the strategic priorities we've set for ourselves."

Per Mejnert Kristensen, CEO of Region APAC at Ørsted, adds: "Greater Changhua 2 Offshore Wind Farm, with its stable revenues from both a long-term power purchase agreement with Taipower and a corporate offtaker with a strong credit rating, presents an attractive and low-risk investment opportunity. The strong support from the participating financial institutions demonstrates ongoing trust in Ørsted-led projects, builds on our deep local collaboration, and provides a significant boost to Taiwan's offshore wind market."

With dual sources of stable revenue, Greater Changhua 2 stands out as a highly attractive, low-risk investment opportunity. The project financing has secured support from 25 domestic and international financial institutions, as well as five export credit agencies.

The asset-level project financing package, which was originated and structured by Ørsted, will be supported by guarantees from 5 ECAs: Export Finance Norway (Eksfin), the Export and Investment Fund of Denmark (EIFO), the Export-Import Bank of Korea (KEXIM), Export-Import Bank of the Republic of China (T-EXIM), and UK Export Finance (UKEF).

The participating banks are: Australia and New Zealand Banking Group Limited, Taipei Branch; Crédit Agricole Corporate and Investment Bank, Taipei Branch; DBS Bank Ltd.; HSBC Bank (Taiwan) Limited; ING Bank N.V., Taipei Branch; Mizuho Bank, Ltd.; MUFG Bank, Ltd.; Oversea-Chinese Banking Corporation Limited, Taipei Branch; Standard Chartered Bank (Taiwan) Limited; Sumitomo Mitsui Banking Corporation; Société Générale, Taipei Branch; Bank of Taiwan; Chang Hwa Bank; CTBC Bank Co., Ltd.; E.SUN Commercial Bank, Ltd.; EnTie Commercial Bank, Ltd.; First Commercial Bank, Ltd.; Hua Nan Commercial Bank; KGI Bank Co., Ltd.; Land Bank of Taiwan; Mega International Commercial Bank Co., Ltd.; Taishin International Bank; Taiwan Cooperative Bank; Taiwan Business Bank; and Export-Import Bank of the Republic of China (T-EXIM).

Sagar Vaish, Director of Structured Finance at Ørsted, visited Taiwan to participate in the signing ceremony with financial institution partners involved in the Greater Changhua 2 project financing.