Ørsted brings in Cathay Life Insurance as investor in Greater Changhua 4 Offshore Wind Farm

- Cathay Life Insurance made its first investment in offshore wind power by acquiring a 50% stake in the Greater Changhua 4 Offshore Wind Farm. The investment amount set a record as the highest participation by a domestic life insurance company in offshore wind power to date.
- Ørsted will retain a 50% stake in the Greater Changhua 4 Offshore Wind Farm and, under the design, procurement, and construction turnkey contract, will be fully responsible for the construction, long-term operation, and maintenance of the wind farm.
- This financing project received enthusiastic support and oversubscription from nine foreign banks, three state-owned banks, and three local private banks.
- This is Taiwan's first offshore wind farm project to involve and receive a financing guarantee from the National Credit Guarantee Administration.
- First Bank became the first domestic financial institution to serve as the managing bank for national financing guarantee limits in offshore wind power financing projects.

Ørsted announced that it has signed an agreement with Taiwan's largest insurance company, Cathay Life Insurance Co., Ltd. Under the agreement, Cathay Life Insurance and its subsidiary, Cathay Wind Power Holdings, will acquire a 50% stake in the 583 MW Greater Changhua 4 Offshore Wind Farm. Ørsted will retain the remaining 50% ownership of the wind farm. This investment represents the largest offshore wind farm investment to date by a Taiwanese life insurance company, marking a historic milestone for Taiwan's offshore wind sector.

The Greater Changhua 4 Offshore Wind Farm and the Greater Changhua 2b Offshore Wind Farm are currently under joint construction, with a total installed capacity of 920 MW. Completion is expected by the end of 2025. In 2020, Ørsted and Taiwan Semiconductor Manufacturing Company Limited (TSMC) signed a corporate power purchase agreement (CPPA) under which TSMC will purchase all electricity generated by the 920 MW Greater Changhua 2b and 4 offshore wind farms over the next 20 years.

The total agreement value includes the acquisition of a 50% stake in the Greater Changhua 4 Offshore Wind Farm project company by the new investors and their commitment to cover 50% of the construction costs, amounting to approximately NT$53.3 billion (around DKK 11.6 billion), to be paid in 2024 and 2025. The transaction, which has received all necessary regulatory approvals, is expected to be completed by the end of this year following the signing of the agreement.

According to the agreement, Ørsted will oversee the entire construction of the Greater Changhua 4 Offshore Wind Farm based on the Engineering, Procurement, and Construction (EPC) Contract. Ørsted will also manage the long-term operation and maintenance of the wind farm through its Operations and Maintenance Center located at the Port of Taichung.

Rasmus Errboe, Deputy CEO and Chief Commercial Officer (CCO) at Ørsted, stated: "We are pleased to once again implement our partnership model in the Asia-Pacific region by collaborating with Cathay Group, a trusted partner with whom we have a long history of successful cooperation, to advance the regional offshore wind sector. This transaction represents a significant milestone in Ørsted's equity divestment and partner model."

Per Mejnert Kristensen, Senior Vice President and CEO of Region APAC at Ørsted, added: "We are honored to collaborate with Cathay, a strong local partner, to advance the Greater Changhua 4 Offshore Wind Farm and provide stable green power for Taiwan. This joint venture with Cathay Life Insurance is highly significant, setting a record as the largest offshore wind investment by a Taiwanese life insurance company. The project has attracted enthusiastic participation from nine foreign banks, three local private banks, three state-owned banks, and six domestic and international export credit agencies (ECAs), demonstrating strong confidence in Ørsted's capabilities in offshore wind construction and operation. It also establishes a new benchmark for green investment in Taiwan."

"We continue to observe strong demand from investors seeking low-risk, stable-return opportunities in offshore wind projects. Ørsted will maintain its unique partnership model in Taiwan, fostering long-term collaboration with high-quality investors and introducing more local capital to support offshore wind development, furthering Taiwan's energy transition goals."

Cathay Life Insurance, a subsidiary of Cathay Financial Holdings, has also invested in the Greater Changhua Offshore Wind Farm SE Ltd. through its "Cathay Sustainable Private Equity Fund."

Andrew Liu, President of Cathay Life Insurance, commented: “We are delighted to partner with Ørsted on the development of the Greater Changhua 4 Offshore Wind Farm project. This investment underscores our commitment to supporting the government’s renewable energy transition while ensuring stable, long-term returns that align with the goals of the insurance sector.”

Cathay Life Insurance and its subsidiary, Cathay Wind Power Holdings, secured the acquisition of the 50% stake in the Greater Changhua 4 Offshore Wind Farm and the necessary project financing. HSBC Bank (Taiwan) Limited acted as the international financial advisor, while CTBC Bank Co., Ltd. served as the local financial advisor. Project financing was provided by 15 foreign and local banks, including:

State-owned banks:
- First Commercial Bank, Ltd.
- Mega International Commercial Bank Co., Ltd.
- Land Bank of Taiwan Co., Ltd.

Local private banks:
- CTBC Bank Co., Ltd.
- Taipei Fubon Commercial Bank Co., Ltd.
- E.SUN Commercial Bank.

Foreign banks:
- Australia and New Zealand Banking Group Limited Taipei Branch
- Citibank (Taiwan) Limited
- Crédit Agricole Corporate and Investment Bank (CACIB) Taipei Branch
- DBS Bank (Taiwan) Ltd
- HSBC Bank (Taiwan) Limited
- OCBC Bank Taipei Branch
- Standard Chartered Bank (Taiwan) Limited
- Société Générale Taipei Branch
- Korea Development Bank (KDB)

The financing structure was designed by Ørsted to secure project funding, with credit guarantees provided by six foreign and local export credit agencies, including:
- Credendo–Export Credit Agency
- Export and Investment Fund of Denmark (EIFO)
- Export Finance Australia (EFA)
- Korea Trade Insurance Corporation (KSURE)
- The National Credit Guarantee Administration
- UK Export Finance (UKEF)

This project also marks the first offshore wind farm to receive a financing guarantee from The National Credit Guarantee Administration, established by the National Development Fund, Executive Yuan, and operated by The Export-Import Bank of the Republic of China. Additionally, First Bank, as the first state-owned bank to act as the national financing guarantee quota management bank for offshore wind projects, demonstrates the strong participation and confidence of state-owned banks in this sector, injecting new energy into the industry's continued growth.

Together, the 1.82 GW Greater Changhua offshore wind cluster will generate enough electricity to power nearly two million Taiwanese households and reduce carbon dioxide emissions by approximately 3.5 million tonnes annually.