UK: NEXI Supports Gunfleet Sands Offshore Wind Farm Financing

Nippon Export and Investment Insurance (NEXI; Chairman: Takashi Suzuki) has decided to provide Overseas Untied Loan Insurance for Offshore Wind Power Projects in UK participated by Marubeni Corporation (“MC”) of Japan.

The MC’s subsidiary, MC GFS Investment Company Limited, has been extended non-recourse loans, and NEXI’s insurance is provided for the financing.

This project will be financed by Mizuho Corporate Bank, Ltd and Sumitomo Mitsui Banking Corporation, and NEXI will solely provide Overseas Untied Loan Insurance with Trade and Investment Insurance for Preventing Global Warming for the lender’s loan. It is the first time for NEXI to provide insurance to a wind power project, and cover the risk of change in Renewable Obligation regime in UK. In addition, this is the first time for NEXI to provide a coverage to a British Pounds denominated loan since the amendment of its policy this April.

The generated power will be sold together with Renewable Obligation Certificates and Levy Exemption Certificates, and compared with the purchase price of power generated by fossil fuels, a higher purchase price can be enjoyed.

MC will invest in the project and participate in the operation jointly with Dong Energy A/S, a Danish national electric power utility and the biggest offshore wind power company in the world. Through this joint participation, MC expects to acquire knowledge and operation technology of offshore wind power business that has potential of future growth, all over the world.

The Japanese government is providing active support for eleven industrial sectors including renewable energy such as wind power to further promote Japanese exports of infrastructure and systems. As an export credit agency NEXI will continue to support projects contributing to overseas business of Japanese companies.

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Offshore WIND staff, March 27, 2012; Image: dongenergy