The European Investment Bank (EIB) has agreed to lend €450m for the development of 288MW Butendiek offshore wind farm in Germany.

The farm will be constructed 53km off the coast of Schleswig-Holstein in the German part of the North Sea, at an estimated cost of €1.4bn.

Featuring 80 turbines, supplied by Siemens, construction of the farm is expected to commence in the first half of 2014.

Renewable energy firm WPD Group, which owns a 10% stake in the project will operate the wind farm on its completion.

EIB Germany lending operations vice-president Wilhelm Molterer commented that Butendiek was made possible due to the strong commitment from its investors.

"And the EIB loan will make an important contribution to this. The financing of renewable energy, particularly offshore wind energy projects, is and will continue to be a key part of the EIB’s work, as it is all about meeting Europe’s ambitious environmental targets.

"Here, Butendiek will have a crucial part to play," Molterer added.

The Danish government export credit agency Eksport Kredit Fonden (EKF), KfW and nine other commercial banks will also provide financing for the project in addition to EIB.