DEUTSCHE Bank announced April 1 it has successfully closed a deal contingent interest rate swap on NT$90 billion (US$3 billion) project finance for the development of a 589MW offshore wind farm on the coast of Changhua County, Taiwan.
The investment consortium, led by Copenhagen Infrastructure Partners (CIP) through its funds CI II and CI III, with two Taiwan life insurers, closed the largest ever wind farm project finance in Taiwan at the end of February.
Deutsche Bank is the sole pre-hedging and sole hedging coordinator for a deal contingent hedge on notional project finance. The bank is also among 25 banks in the syndicate group of lenders.
This is the second such deal contingent interest rate swap transaction delivered by Deutsche Bank for the wind farm project in Taiwan.
In 2019, the bank broke new ground for the Yunlin project, arranging and syndicating the world’s first deal contingent hedge on project finance to support investment into Taiwan’s nascent renewable energy sector. The structure won three highly respected Deal of the Year awards.
The Changfang and Xidao wind farm project off the coast of Changhua County is the latest wind energy project in Taiwan’s emerging renewables sector that has attracted foreign investors in the transition to renewable energy.
“Deutsche Bank is extremely proud to deliver this innovative risk solution, particularly as it supports European investment in Taiwan’s emerging renewable energy industry,” says Taiwan country chief and head of Investment and Corporate Banking, Cynthia Chan. “The next decades will see significant change as industries and economies transition for a low carbon world, and Deutsche Bank is pleased to play a role in supporting Taiwan’s journey to renewable energy.”
This transaction follows the bank’s first and award-winning deal contingent hedge for a German wind farm developer in Taiwan in 2019. Last year Deutsche Bank also led the market with Taiwan’s first green bond in Taiwan dollars for foreign corporate issuer, Ørsted.