The developers of one of the world’s largest offshore wind farms have announced financial close with £1.3 billion of project financing.

Masdar, Statoil and Statkraft say that the long term financing for the 402 MW Dudgeon offshore wind farm in the UK will fund the capital requirements of the project, which is under construction.

The deal with a consortium of international banks makes Dudgeon the first offshore wind project developed under the UK’s contracts for difference (CFD) incentive scheme to reach financial close.

"Closing such a significant phase of the project’s development so swiftly illustrates the energy industry’s confidence in the long-term potential of offshore wind, and the increasing sophistication of financing models available to the sector," said Halfdan Brustad, Chairman of Dudgeon Offshore Wind Limited. "It is also a testament to the project’s commercial competitiveness, smooth execution, and the growing investor appetite for utility-scale renewable energy."

Lead arrangers of the financing include Siemens Financial Services, Bank of Tokyo-Mitsubishi, BNP Paribas, Credit Agricole and Sumitomo Mitsui Banking Corporation. Statkraft and Statoil are also participating in the financing through sponsor co-lending. Statkraft will finance its 30 per cent share in the project, while Statoil will finance a share of 17.5 per cent.

Dudgeon will comprise 67 turbines and is on schedule to begin commercial operations by the second half of 2017.