Orrick Advises on US$1.6bn Project Financing of 298MW Zhong Neng Offshore Wind Farm in Taiwan
This is China Steel Corporation’s first entry into the offshore wind market.
This financing is the first majority Taiwanese bank non-recourse financing of an offshore wind farm in Taiwan.
The is the most “localised” offshore wind project in Taiwan to date.
Orrick advised the lenders and hedge providers on the approximately US$1.6 billion project financing of the 298MW Zhong Neng offshore wind farm, which is being developed in a joint venture between China Steel Corporation (CSC) (51%) and Copenhagen Infrastructure Partners (CIP) through its fund Copenhagen Infrastructure IV (49%).
The financing signed on November 24 and is expected to reach financial close shortly. The project is situated off the west coast of Changhua County, adjacent to CIP’s Changfang and Xidao offshore wind project, on which Orrick is also lenders’ and cover providers’ counsel. The project is the first in Taiwan to be mostly local bank financed on a non-recourse basis.
The lending group consists of 20 Taiwanese commercial and state-owned banks, together with some international banks, namely: Bank of Taiwan, Mega International Commercial Bank Co., Ltd., CTBC Bank Co., Ltd., Taiwan Cooperative Bank, Ltd., First Commercial Bank, Ltd., Land Bank of Taiwan, Hua Nan Commercial Bank, Ltd., Kaohsiung Branch, Chang Hwa Commercial Bank Ltd., Taishin International Bank Co., Ltd., Taipei Fubon Commercial Bank Co., Ltd., E.SUN Commercial Bank, Ltd., KGI Bank Co., Ltd., The Export-Import Bank of the Republic of China, Kaohsiung Branch., Taiwan Business Bank, Kaohsiung Branch., Bank of Kaohsiung Co., Ltd., The Shanghai Commercial & Savings Bank, Ltd., Crédit Agricole Corporate and Investment Bank, Taipei Branch., Sumitomo Mitsui Banking Corporation, Taipei Branch., Mizuho Bank, Ltd., Kaohsiung Branch and MUFG Bank, Ltd.
CSC and CIP worked together on obtaining grid allocation for Zhong Neng in 2018 and entered into a 20-year PPA with the state-owned Taiwan Power Company in 2019. Following financial close, CSC and CIP will together lead the project through its construction phase with the intended start of commercial operations in 2025. The project is expected to generate enough clean energy to power 300,000 households in Taiwan.
The Orrick team was co-led by a cross-border London/Singapore team of partners including Evan Stergoulis, Adam Smith and Jon Thursby and lead associate Oliver Sikora, together with invaluable input from associates Tom Harrison-Cripps, Emily Yung and David O’Donovan and trainees Taylor Brien and Junaid O’Balogun. Mark Beeley (International Arbitration and Dispute Resolution), Jonathan Rosen (Tax) and Bridget Winters (Tax) also provided support.
Adam commented, “We are delighted to be advising the lenders on the first Taiwanese bank led project financing of an offshore wind farm in Taiwan; a unique and landmark transaction in Asia’s largest offshore wind market.” Evan added, “This transaction consolidates Orrick’s leading position in the Asian offshore wind market. The firm has been involved on most of the Taiwan offshore wind projects that have achieved financial close to date, including advising contractors and on M&A. The firm is also highly active in Japan, where our team is the market leader, as well as South Korea and Vietnam, drawing on the strength of our extensive European and fast developing US offshore wind practices.”
Evan Stergoulis Partner, Energy, Renewable Energy
D+44 20 7862 4605
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D: +44 20 7862 4605
Public Power Financing
Evan Stergoulis Partner
Evan has more than 25 years’ experience advising on the financing, development and acquisition of energy projects. Throughout his career, Evan has been at the forefront of developing cutting-edge, innovative structures that have helped to shape industry standards.
Evan advises lenders, ECAs, institutional investors, renewable energy companies, investment firms and pension funds on financings, M&A, joint ventures and other strategic combinations. He brings considerable experience in wide range of renewable energy portfolio deals, as well as gas and power transmission and distribution projects and he has a market-leading offshore wind practice.
Chambers Global 2020 notes that clients say Evan is a “leading figure who has secured incredible and loyal clients because he does an excellent job.” He has also been named to The Lawyer’s Hot 100. and named to A Word About Wind's Top 100 Legal Power List.
Adam Smith Partner, Banking & Finance, Energy
London; Singapore
M+44 7921 108 554
M: +44 7921 108 554
Adam Smith Partner
Adam is a project development and finance lawyer in the energy, infrastructure and natural resources sectors, advising on some of the most complex and high-value project development and financing matters – often cross-border renewable energy projects.
Adam also has a complementary breadth of experience from a variety of financing, M&A, capital markets and general corporate matters in numerous sectors.
Jon Thursby Partner, Energy, Renewable Energy
D+65 9817 6125
D: +65 9817 6125
Jon Thursby Partner
As a projects and construction lawyer, Jon advises on all aspects of the construction and operation of offshore wind and other large renewable energy projects in established and developing markets.
Jon advises sponsors, financial institutions and contractors on the development of offshore wind, solar and biomass projects across Asia, Europe and the United States. He has a particular focus on the developing offshore wind markets in Taiwan, Japan and elsewhere in the APAC region.
Jon's recent experience includes performing the role of Commercial Director for the Formosa II offshore wind project, which is being jointly developed by JERA, Macquarie's Green Investment Group and Swancor Renewable Energy in Taiwan. Jon also recently advised the lender group on the award-winning Changfang and Xidao offshore wind project, which remains one of the largest offshore wind project financings in Asia.
Prior to relocating to Singapore, Jon was based in London where he advised Ørsted, Copenhagen Infrastructure Partners and other offshore wind developers, as well as export credit agencies, commercial lenders and other financial institutions, on some of the most complex and innovative offshore wind projects in the UK.
Jon began his career as a construction litigator and continues to advise on both contentious and non-contentious matters.