5 February 2021

AMSCAP advise CDPQ on US$2.7 billion investment in Taiwan Offshore Wind

Amsterdam Capital Partners B.V. (AMSCAP) successfully advised Caisse de dépôt et placement du Québec (CDPQ) on its NT$75 billion (approximately US$2.7 billion) co-investment in the 605MW Greater Changhua 1 Offshore Wind Farm (Greater Changhua 1) in Taiwan and the debt financing thereof.

Under the terms of the transaction, which is subject to customary and regulatory approvals, CDPQ together with Cathay PE will acquire 50% of Greater Changhua 1. Ørsted will retain its remaining 50% share and deliver the long-term operations and maintenance (O&M) services to the project. Greater Changhua 1 is part of the 900MW Greater Changhua 1 & 2a Offshore Wind Farms, which Ørsted is currently constructing and expects to be completed in 2022.

The 50-50 partnership is the first of its kind in the Asia Pacific offshore wind sector and furthermore represents CDPQ’s first direct investment in Taiwan through its Infrastructure team, which has a long track-record in the renewable energy sector.

AMSCAP acted as Financial Advisor to CDPQ and assisted with the commercial negotiations of the construction and operations contracts with Ørsted as well as all equity and Holdco debt financing documents.

Michael van der Heijden, Managing Director of AMSCAP, stated “This is yet another milestone transaction in Asia, both for the offshore wind sector in Asia and AMSCAP. This transaction, although not the first offshore wind acquisition and financing in Taiwan, stood out in many respects, including the chosen contracting strategy and debt structure. As the offshore wind sector further develops in the Asia Pacific region, AMSCAP will continue to deploy its expertise in the sector and deliver high value services to our clients, both investors and developers alike.”

The acquisition includes a multi-tranche financing package from 15 international and local banks and two local life insurance companies: Cathay United Bank, CTBC Bank, E-SUN Bank, Taipei Fubon Bank, Cathay Life Insurance Co., Taiwan Life Insurance Co., BNP Paribas, Crédit Agricole, Deutsche Bank, DZ Bank, HSBC, Oversea-Chinese Banking Corporation, Korea Development Bank, Siemens Bank, Société Générale, Standard Chartered and Sumitomo Mitsui Banking Corporation.

The financing package will furthermore be partially supported by guarantees and/or loans from five export credit agencies (ECAs); Eksport Kredit Fonden (EKF) of Denmark, UK Export Finance (UKEF), Atradius of the Netherlands, Korea Trade Insurance Corporation (KSURE), and Export Development Canada (EDC).

AMSCAP has advised CDPQ since early 2020 on this acquisition and HoldCo debt financing. Quentin Le Noac’h, Director at AMSCAP, said “Despite travel restrictions, the team of sponsors and advisors located in Taiwan, Hong Kong, Australia, Singapore, the United Kingdom, Germany, The Netherlands and Canada managed to close this complicated transaction and debt package with a large group of lenders. We achieved this by working in very close partnership with CDPQ and its broader suite of advisors.”

More details can be found in the press release attached.

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