Danish energy company Orsted A/S yesterday signed a five-year NT$25 billion (US$801.92 million) revolving loan facility agreement with 15 state-owned and private banks for its offshore wind farm projects off Changhua County.
Bank of Taiwan (BOT, 台灣銀行), BNP Paribas SA and Cathay United Bank (國泰世華銀行) are to serve as the mandated lead arrangers for the loan facility.
The three banks would provide loans of NT$3 billion each, while the other 12 banks would be responsible for the remaining NT$16 billion.
“The interest rate is 1.7 percent,” BOT vice president Lillian Lin (林麗婈) told a news conference in Taipei.
The other 7 state-run banks include Mega International Commercial Bank (兆豐銀行), Chang Hwa Bank (彰化銀行), Land Bank of Taiwan (台灣土地銀行), Taiwan Cooperative Bank (合作金庫銀行), First Commercial Bank (第一銀行), Hua Nan Commercial Bank (華南銀行) and Taiwan Business Bank (臺灣中小企銀).
The remaining 5 private banks are E.Sun Commercial Bank (玉山銀行), Taishin International Bank (台新銀行), CTBC Bank (中國信託銀行), KGI Bank (凱基銀行) and Deutsche Bank AG.
The offshore wind power industry is new to Taiwan, presenting unknown factors, Lin said, adding that banks are nonetheless willing to participate as the duration of the loans is short, allowing them to test new waters.
The feed-in tariffs at which Orsted would be providing wind-powered electricity are a strong guarantee that the company should have steady cash flow, Lin said.
The deal is Orsted’s first step toward establishing a green financial framework in Taiwan.
The company plans to issue New Taiwan dollar-denominated green bonds later this year, it said.
Orsted plans to invest up to about NT$380 billion in its four wind farms off Changhua, with an initial investment of NT$165 billion, said Allan Andersen, head of finance distribution and customer solutions, and treasury and risk management at Orsted.
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