Masdar signs $1.6bn refinancing deal for Dudgeon wind farm
Original financing for Dudgeon was successfully closed in May 2016
Masdar along with Equnior and China Resources Group have signed a hybrid refinancing agreement worth $1.6bn for its 402MW Dudgeon wind farm JV. The refinancing by the co-owners of the Dudgeon wind farm, which is located in Britain’s North Sea, includes $710m of commercial bank debt and $892m of senior secured notes privately placed with institutional investors, maturing in 2032.
According to a statement from Masdar, both tranches have been oversubscribed, with the financial close expected in the coming week. The commercial tranche will be fixed upon the financial close of the transaction and execution of interest rate hedging, Masdar said.
The notes have been publicly rated A- by Fitch (EXP), which is said to reflect Dudgeon’s efficient operations and robust asset performance. The financing also includes approximately $190m in ancillary facilities provided via commercial bank commitments.
“This reconfirms the strong bankability of Dudgeon and further reflects the market appetite for large-scale assets which have a robust credit profile, transparent economics and are subject to stable regulatory environments. It also demonstrates our own commitment at Masdar to the United Kingdom’s renewable energy sector. The combined capacity of the UK wind energy projects in which we are partner today exceeds 1GW, enough clean energy to supply nearly one million homes,” said Masdar CEO Mohamed Jameel Al Ramahi.
The Dudgeon Offshore Wind Farm is located 32km off the Norfolk coast. Its 67 wind turbines produce 1.7-terawatt-hours (TWh) of electricity annually, which is said to be sufficient to power an estimated 410,000 UK homes and displace 893,000 tonnes of carbon dioxide annually.
Masdar and Equinor both own a 35% stake in the UK project along with China Resources Group, which has the other 30% stake.
“It is a unique project with strong operational performance. The excellent collaboration with our partners and advisors has enabled the successful refinancing. The A- (EXP) credit rating and investors’ keen interest further underpins the market confidence in Dudgeon and is strong evidence of Equinor’s competence and capacity to successfully develop and operate offshore windfarms,” commented Beate Myking, chair and director of Dudgeon Offshore Wind Limited.
