The London office of international legal practice Norton Rose has advised lenders the UK Green Investment Bank, Lloyds Banking Group, Royal Bank of Scotland, Santander and Siemens Bank on the financing of Dutch pension fund PGGM and Ampere Equity Fund’s interest in Walney offshore wind farms, off the coast of Cumbria.
The value of the term loan and working capital facility is approximately £225 million and represents the first time the UK Green Investment Bank has provided direct lending support to a project financing.
The financing will enable PGGM and Ampere Equity Fund, acting jointly through their investment vehicle OPW, to refinance their stake in the wind farm.
Jon Ellis, partner, Norton Rose, who led the deal, commented:
“Investor interest in the UK’s offshore wind energy sector is growing and this transaction illustrates how commercial lenders can become comfortable financing minority stakes in large offshore wind farms. This is likely to become a feature of the market as the sector seeks to include a wider group of investors in offshore wind investment.”
“We were particularly pleased to have advised the UK Green Investment Bank on their first participation as a lender on a large project financing.”
Norton Rose was appointed to advise on the transaction in 2011. Energy partner Jon Ellis led the team advising the lenders, together with consultant John Wood, senior associates Steve Towell and Doreen Tchan and associates Leo Thorn Gent, Inga Aryanova and Conrad Purcell. Partner Nick Pincott advised on due diligence, partner Matt Hodkin, on tax, together with associate James Murphy, and partner Dean Naumowicz on hedging, with associate Dominic Phillips.
Clifford Chance advised OPW. DONG Energy, the developer, operator and majority owner of Walney offshore wind farm was advised by Watson Farley Williams and minority owner Scottish and Southern Energy was advised by Eversheds.
