As part of the funding strategy, one thing worth noting is the majority of project finance debt will be backed or covered by the Export Credit Agencies, which will greatly reduce the exposure of financial institutions

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Hai Long project conducted first cut of steel for pin piles with EEW KHPC. (Credit: HAI LONG)

The Hai Long offshore wind project continues to progress, having executed the majority of its key contracts with suppliers and commenced early construction works including starting the fabrication of key components for the wind farm. The team continues to progress and actively work towards reaching the financial close in 2023. The project will be financed by equity from shareholders and debt financing from local and international financial institutions.

As part of the funding strategy, one thing worth noting is the majority of project finance debt will be backed or covered by the Export Credit Agencies, which will greatly reduce the exposure of financial institutions. The percentage of cover will be the highest in Taiwan’s Offshore Wind Industry.

In December 2022, as part of its partnership model, Northland announced it has partnered with a global organization to advance its interest in Taiwan. Northland signed an agreement with Gentari International Renewables Pte. Ltd. (“Gentari”), to acquire 49% of Northland’s ownership interest in the Hai Long offshore wind project. Transaction close remains subject to receipt of customary local regulatory approvals and satisfaction of all closing conditions pursuant to the terms of the purchase and sale agreement.

Upon closing, the transaction will result in Gentari holding a 29.4% indirect equity interest in the Project. Northland remains committed to the project and as the largest shareholder and will continue to take the lead role in its construction and operation.

This partnership supports the global transition to renewable energy and demonstrated the confidence of large international energy players in this project, and supports Taiwan’s energy transition.

Source: Company Press Release