PGGM, Ampere Refinance Walney OWF Debt

Facilities put in place by Dutch pension fund PGGM and Ampere Equity Fund for the Walney offshore wind farm in 2012, which enabled the two investors to own 24.8% stake in the project through their investment vehicle OWP, have been refinanced with the transaction closing on 15 December. 

In 2012, when OWP invested in Walney, an initial debt transaction of GBP 224 million was raised on a non-recourse basis from a group of five banks, including the UK Green Investment Bank (GIB), which saw its first offshore wind transaction.

That debt has now been refinanced for an overall amount of GBP 186 million, provided by KfW-IPEX, RBS, Santander and Siemens Bank.

The refinancing extended the maturity of the debt and brought down pricing in line with current market conditions, according to Green Giraffe, which advised OPW both in 2011-12 on the original financing of the project and now on the debt refinancing.

“This transaction illustrates the continued appetite for financing minority participations in large offshore wind farms and also demonstrates the increasing maturity of the sector, with the lenders making facilities available for a longer term than the original financing closed in 2012. Other projects financed on a “mini-perm” basis in and around this period will no doubt take note,” said Rob Marsh from Norton Rose Fulbright, a law firm that acted as a lender’s legal adviser both in 2012 and now.

The project legal adviser was Clifford Chance.

Developed by DONG Energy, which retains a 50.1% stake, the 367MW Walney offshore wind farm has been operational since 2012. SSE owns 25.1% and the remaining 24.8% is owned by OPW.