Linklaters advises lenders of the Formosa 2 offshore wind project in Taiwan

  • One of the largest and most innovative multi-sourced project financings which has come to market in Asia in 2019
  • Financing involved four ECAs and 24 international and local Taiwanese financial institutions
  • Signals the continued appetite for the Taiwan offshore wind market in the context of the continued internationalisation of the sector

Linklaters has advised the ECAs and common lenders on the US$2bn (NT$62.4 bn) project financing of the 376 MW Formosa 2 offshore wind project in Taiwan.

The financing group comprised 19 international and Taiwanese banks, four export credit agencies from Europe (Credendo), Denmark (EKF), Korea (KSURE) and the UK (UKEF) and a Taiwanese life insurance company.

The project, jointly developed by Macquarie Capital (75%) and Swancor Renewable Energy (25%), is situated off the coast of Miaoli and will utilise 47 x 8 MW turbines supplied by Siemens Gamesa. It is being developed under the ‘fast track’ programme under the approval of the Taiwan Ministry of Economic Affairs and is due for completion in December 2021. 

The transaction was led by James McLaren, partner and Head of Linklaters’ Asia Green Energy Group, who is based in the firm’s Hong Kong office. James was supported by Managing Associate Ying Fu and Associate Suzy Su.

The team also leveraged on the expertise from the firm’s extensive global network including support from construction experts Kevin Crombie, Counsel, in Singapore and Andrew Penfold, Counsel, in London as well as Joo Hee Lee, partner in Seoul and Stephen Le Vesconte, partner in Paris.

Partner James McLaren, commented:

“We are excited to have the opportunity to support the financing parties on Formosa 2 transaction.  We recognise the importance of the transaction to the sponsors and finance parties as well as the development of the offshore wind sector in Taiwan.  The successful close of Formosa 2 following our previous roles on the financing for Formosa 1 and Yunlin, as well as ongoing involvement in further deals, marks us out as the leading international law firm operating in the sector. The transaction also continues the important trend of increasing ECA involvement in the offshore market which we believe has benefits beyond Taiwan.”

Linklaters has long-standing experience in the renewable energy sector. The firm has been involved in some of the most transformational offshore wind projects in Asia, including advising the common lenders and ECAs on Formosa 1and recently acted for the sponsors on the Yunlin project.  The team is currently advising on all of the other active offshore wind financings in Taiwan and has ongoing mandates in the emergence of the offshore wind sector in South Korea, Japan and Vietnam.