- Marks the first major direct equity investment by Taiwanese life insurer in the offshore wind market.
- Significant participation of the Taiwanese state-owned banks in the financing.
Linklaters advised Ørsted, a global leader in offshore wind power, on its equity divestment of a 50% stake in and stapled financing arrangements of its 583MW Greater Changhua 4 offshore wind project in Taiwan to Cathay Life Insurance, the leading insurance company in Taiwan. This transaction marks several industry firsts, including the first major direct equity investment by a Taiwanese life insurer in the offshore wind market, along with significant participation of the Taiwanese state-owned banks in the financing.
Located next to the 900MW Greater Changhua 1 and 2a, which are fully operational, the Greater Changhua 4 site is part of Ørsted’s 920MW offshore wind farms, Greater Changhua 2b and 4, which the company is currently constructing and expects to complete by the end of 2025. Ørsted will continue to own the remaining 50% ownership stake in the wind farm.
The total sales price comprises the acquisition of a 50% ownership share and a commitment to fund 50% of the payments under the construction contract for the wind farm. The total value of the transaction is approximately DKK 11.6bn (approximately US$1.64bn), the largest investment made by a Taiwanese life insurer in an offshore wind farm. The landmark investment is backed by international and local banks, as well as foreign and local export credit agencies (ECAs).
The financing package, structured and led by Ørsted, is supported by guarantees from six ECAs: Credendo, the Export and Investment Fund of Denmark (EIFO), Export Finance Australia (EFA), Korea Trade Insurance Corporation (K-SURE), National Credit Guarantee Administration (NCGA), and UK Export Finance (UKEF). This is the first time that the government-run NCGA has guaranteed offshore wind financing.
The cross-jurisdictional Linklaters team was led by Ying Fu (Partner, Hong Kong SAR), with support from James McLaren (Consultant, London), Richard Ginks (Partner, London), Richard Coar (Partner, London), Xylia Sim (Partner, Singapore), Alistair Fraser (Partner, London), Derek Loh (Solicitor, Hong Kong SAR), Paul Grethe-Watanabe (Managing Associate, Tokyo), Isabella Peplinski (Managing Associate, London), Joowon Lee (Managing Associate, London) and Matt Watson (Managing Associate, London) among others.
Linklaters’ Partner Ying Fu commented:
“We are absolutely delighted for Ørsted, Cathay Life and the financiers on achieving this milestone! Grateful also for the trust placed by Ørsted in Linklaters to successfully deliver the transaction for them. This marks the ninth successfully closed offshore wind project in Asia on which we have advised – an achievement which we are immensely proud of and a testament to the first-class team who have worked on the transaction for more than two years. We are excited to build on this success and look forward to working with our clients to further advance the energy transition.”
