Orrick Advises the ECAs and Lenders on Landmark Offshore Wind Project in Taiwan

Copenhagen Infrastructure Partners (CIP) has secured an approximately NT$103 billion (approximately US$3.1 billion) financing from a consortium of export credit agencies, commercial banks (international and local), hedge providers and other financiers advised by Orrick. The financing will be used to develop the 495MW Fengmiao 1 offshore windfarm in Taiwan.

• This landmark project is one of the first offshore windfarms in the world and the first in Asia to be a truly zero subsidy project, being non-recourse financed based solely on corporate power purchases (CPPAs).
• It is also the first Round 3.1 offshore wind project in Taiwan to reach financial close.
• Orrick advised several export credit agencies, lenders (international and local) and hedge providers on the project financing, which was signed on March 14 and reached financial close on March 19.

THE TRANSACTION

The financing is covered by several export credit agencies and is provided by a syndicate of 20+ commercial banks (international and local), hedge providers and other financiers.

Copenhagen Offshore Partners (COP) will lead the project through its construction phase. Commercial operations are expected to begin in 2028.

The project company entered into CPPAs with United Microelectronics Corporation, Sino-American Silicon Products Inc., Far EasTone Telecommunications Co., Ltd., MediaTek and two other offtakers.

THE IMPACT

Located off the west coast of Taichung County, the Fengmiao 1 windfarm is one of the first offshore wind projects of scale in the world and the first in Asia to be financed solely on the basis of several CPPAs. Fengmiao 1 is a landmark transaction that sets a new precedent.

THE TEAM

Led by Adam Smith, the London and Singapore based team includes Evan Stergoulis, Albert Yu, and Jon Thursby, associates Oliver Sikora (lead senior associate), Deska Widianto, Kristin Hoo, Taylor Brien and Gilbert Harrold, and trainees Beth Brabner, Thomas Seward and Milo Dunne. Olivier Bernard (Structured Finance) and Sarah Stockley (International Arbitration and Dispute Resolution) also provided support.