Global offshore wind developer, Ørsted today announced the signing of its first green loan facility in support of wind energy. This green facility — guaranteed by Ørsted A/S and for Greater Changhua projects — attracted a total of 15 banks to join and provided excellent opportunities to local financial institutions to participate in offshore wind projects with minimal risk exposure.
This is the first time that local state-owned banks in Taiwan are involved in financing offshore wind projects, also the first time for all eight state owned banks participated in a green loan facility for offshore wind. The five-year NTD 25 billion syndicated green revolving loan facility is for Greater Changhua projects.
Ørsted made the final investment decision for the Greater Changhua 1+2a projects at the end of April. The developer’s treasury team, together with Bank of Taiwan, BNP Paribas and Cathay United Bank, the mandated lead arrangers, subsequently completed a roadshow with local and foreign banks in Taiwan in May.
Within less than two months, the deal was finalized with the following 15 banks joining Ørsted’s NTD 25 billion Green Loan Facility:
Stated owned banks: Bank of Taiwan, Mega International Commercial Bank, Chang Hwa Commercial Bank, Land Bank of Taiwan, Taiwan Cooperative Bank, First Commercial Bank, Hua Nan Commercial Bank, Taiwan Business Bank
Private banks: BNP Paribas, Cathay United Bank, E. Sun Commercial Bank, Taishin International Bank, CTBC Bank, KGI Bank, Deutsche Bank AG
‘’We are very pleased with the commitment from 15 banks on this transaction, especially the domestic Taiwanese banks. We are proud of this being the first ever green loan facility in Taiwan under our new Green Finance Framework which matches our ambition of doing all of Ørsted’s financing in the green format,” said Allan B. Andersen, Senior Vice President for Treasury & Risk Management,
Ørsted will now start the preparations for a potential green bond issuance in the local market towards the end of this year.