Hai Long Offshore Wind Project (“Hai Long” or “Hai Long Project”) today held a Financial Close Ceremony and announced that it has met all conditions to close its NTD 117 billion* long-term over 20 years green financing, this is also the longest offshore wind project finance contract in Taiwan to date.
“For Hai Long reaching financial close is a significant achievement that highlights the viability of offshore wind as a source of sustainable energy and demonstrates the ability of international investors to collaborate to achieve a common goal. It also underlines Taiwan’s commitment to becoming a leading player in the global renewable energy market,” said David Povall, Chairman of Hai Long. “We are very pleased with the extraordinary effort put forth by our team, our partners, the government, and the project’s financiers, all working together to achieve this milestone for the project.”
The project financing will be provided by 16 international and local lenders, including CTBC, Fubon Bank, Taiwan Life, Fubon Life, HSBC, Crédit Agricole CIB, ANZ, SMBC, Mizuho, MUFG, Deutsche Bank, Standard Chartered Bank, DBS, Korea Development Bank, Shinsei Bank, and JBIC Direct Loan. One noteworthy point is that a significant amount of funding will be provided by local financial institutions. The financing amount provided by each local financial institution is at a record high in Taiwan’s offshore wind project financing. This demonstrates that green finance is flourishing and gradually maturing in Taiwan.
Meanwhile, Hai Long has obtained the highest credit guarantee and insurance in the Taiwan market from the seven Export Credit Agencies (ECAs), including Export Development Canada (EDC), Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Export Finance Australia (EFA), Export Finance Norway (Eksfin) and Credendo – Export Credit Agency of Belgium.
Hai Long’s project financing and construction costs are denominated in multiple currencies, with the majority in New Taiwan dollars. Interest rate exposures are being managed with a combination of fixed rate tranches and long-term interest rate hedges in line with shareholders’ risk management strategy and to meet project finance terms. Foreign currency hedges are being used to manage construction costs in excess of an underlying funding currency.
Hai Long is located approximately 45-70 kilometers off the Changhua coast in Taiwan Strait and consists of two phases, Hai Long 2 and 3, with an expected combined generating capacity of 1,022 MW. Hai Long 2A was awarded up to 300 MW of grid capacity under a Feed-in-Tariff, while Hai Long 2B & 3 were awarded up to 744 MW of grid capacity in Taiwan’s first competitive price-based auction in 2018. Hai Long subsequently signed a corporate power purchase agreement for the 744 MW auction portion in 2022. The project has obtained all environmental approvals and its major construction permit and has commenced with early construction work and fabrication for key components. Completion of construction activities and full commercial operations are expected in 2025/2026.
Hai Long will play an important role in helping the Government of Taiwan achieve its renewable energy target of 15 GW of offshore wind to be constructed between 2026 and 2035. Once operational, Hai Long will be the largest offshore wind project in Taiwan, providing enough clean energy to power more than one million Taiwanese households.
*The total NTD 117 billion debt amount at closing changed from the NTD118 billion at signing financial agreements as a result of the final foreign exchange rates on closing. There were no other material changes to the financial metrics disclosed within the press release dated September 21, 2023.
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Media Contact
Hai Long Offshore Wind
Jewell Hsu, Senior Public Relations Manager
+886-900-841-211 / jewell.hsu@hailongoffshorewind.com
