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Financing concluded for offshore wind park Butendiek in the German North Sea

5 Mar 2013For better business

In February 2013 Sector Based Structured Finance Germany and ING Structured Finance Utilities Power & Renewables concluded a € 1,023 mln project financing for the 288 MW Butendiek offshore wind project in Germany. The project is expected to provide green energy for approximately 370,000 households, which makes it an important contribution to Germany’s transition to renewable energy (“Energiewende”).

Germany’s energy transformation
Germany’s Energiewende (energy transformation) is a plan to shift from nuclear and fossil fuels to renewables. The first proposal for the Energiewende came in the 1980s, which became policy in 2000 and which was sped up after the Fukushima disaster in March 2011. In the summer of 2011, the conservative federal government of Germany passed a law that will phase out nuclear power in Germany by 2022, and they proclaimed the so-called “Energiewende.”

More specifically, Germany’s clean-energy goals are to cut greenhouse-gas emissions from 1990 levels by 40% by 2020 and by 80% by 2050—but it must now meet those targets without nuclear power.

Details of the Butendiek project
The Butendiek project has been developed by wpd, a German wind project developer with a track record of wind projects in Germany totaling into ca. 1,500 turbines with a capacity of 2.5 GW. The shareholders of the project are, next to wpd, Siemens Project Ventures, Marguerite Fund, Industriens Pensions and PKA. The project comprises 80 Siemens SWT 3.6 turbines with a rotor diameter of 120m on monopile foundations supplied by Ballast Nedam. The inner-park cables will be laid by Visser & Smit Marine Contracting and the offshore substation will be supplied by Frabricom. The project is located in the German North Sea 32 km west of the island of Sylt in a water depth of 20 meters.

The total investment in the project amounts to €1.4 billion. The project financing of €1,023m has been provided by the Danish export credit agency EKF , the European Investment Bank, the German development bank KfW and 9 commercial banks.

ING Sector Based Structured Finance Germany (SBSF Germany) in co-operation with Structured Finance Utilities, Power & Renewables (SF UPR) Amsterdam has provided a total financing of EUR 61.2 million consisting of a EUR 33.9 million 14-year term loan facility, a EUR 6.8 million contingent term loan facility to Offshore Wind Park Butendiek GmbH & Co KG as well as a EUR 20.5 million payment guarantee in favour of Ballast Nedam, the foundation supplier. In addition, Financial Markets Amsterdam has executed a EUR 150 million 10-year interest rate swap.

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