Global Infrastructure Partners (GIP) has agreed to acquire a 50% stake in Dong Energy's 330MW Gode Wind 1 offshore wind farm in Germany for €780m.
As part of the deal, the private equity infrastructure investor will issue a 10-year project bond to a consortium of German insurance companies, for lending money.
Talanx, one of the largest German insurance companies, will act as lead manager for the €556m bond to finance GIP’s purchase of the wind farm.
Of the €556m bond, Talanx will provide up to €320m.
Talanx Asset Management chief investment officer Thomas Mann said: "Gode Wind 1 is a perfect match for us. We are very delighted to have teamed up with two very experienced and reputable sponsors, DONG Energy and GIP.
"In addition to that, the investment demonstrates Talanx’s capability to structure, arrange and finance large scale transactions with in-depth investment experience and product capability."
Construction on the wind farm is currently underway, approximately 33km north-west of Norderney, one of the East Frisian Islands.
The wind farm with 55 units of Siemens turbines will be Germany’s biggest offshore wind farm, together with its sister project, Gode Wind 2.
The clean electricity generated by the facility will be enough to power close to 340,000 German
GIP chairman and managing partner Adebayo Ogunlesi said: "We are delighted to be forming this strategic partnership with DONG Energy, a recognised leader in the energy sector and a pioneer in the development and operation of offshore wind farms.
"This transaction builds on GIP’s considerable experience in the renewable space and is in line with our strategy of partnering with industry leaders. We are pleased to bring GIP’s added-value investment model to the promising market for offshore wind projects."
In 2013, Dong Energy announced plans to invest close to €2.2bn in the construction of Gode Wind 1 and 2 in
the German part of the North Sea.
Image: Gode Wind 1 offshore wind farm will be Germany’s biggest offshore wind farm, together with its sister project, Gode Wind 2. Photo: courtesy of DONG Energy.