Linklaters advise NEXI and KSURE on Changfang and Xidao offshore wind project in Taiwan

  • First Japan ECA financing in the Taiwan offshore wind sector
  • Financing involved a consortium of 25 international and Taiwanese banks and financial institutions and six export credit agencies
  • Builds on the structures developed on previous transactions in the Taiwan offshore wind market to accommodate increasingly diverse sources of funds

Linklaters has advised Nippon Export and Investment Insurance (NEXI) and Korea Trade Insurance Corporation (KSURE) on the approx. US$3 billion (NT$90 billion) project financing of the 589 MW Changfang and Xidao offshore wind project in Taiwan.

The financing group comprised 25 international and Taiwanese banks and financing institutions (including lending from Copenhagen Infrastructure II, Taiwan Life Insurance and TransGlobe Life insurance), NEXI, KSURE and four other export credit agencies from Denmark (EKF), the Netherlands (Atradius), Norway (GIEK) and the UK (UKEF). 

The project is situated off the coast of Changhua Country and will utilise 62 wind turbine generators from MHI Vestas Offshore Wind A/S (MVOW). Copenhagen Infrastructure Partners (CIP) has majority ownership of the project through its funds Copenhagen Infrastructure II and Copenhagen Infrastructure III, with Taiwan Life Insurance and TransGlobe Life Insurance holding a minority stake.

The transaction was led by Linklaters’ partner and Head of Asia Energy & Infrastructure, John Maxwell and partner and Head of the firm’s Asia Green Energy Group, James McLaren, with support from Seoul-based partner, Joo Hee Lee, and a team of strong associates across the region, including managing associates Xylia Sim and Ying Fu and associate Tristan Kelly.

Partner, and Head of Asia Energy & Infrastructure, John Maxwell commented:

“We are honoured to have supported NEXI and KSURE on this important milestone project, which in the case of NEXI, not only represents the first Japan ECA financing in the Taiwan offshore wind sector, but also a first for NEXI in providing insurance for MVOW exports and for projects supported by infrastructure funds. This project is an example of the increasing involvement of Asian ECAs in the offshore market and we are delighted that we have been able to provide our clients with the benefit of our experience both in Europe and more recently in Taiwan.”

Partner, and Head of Linklaters’ Asia Green Energy, James McLaren commented:

“This transaction builds on our involvement across all of the previous offshore wind financings in Taiwan. Our track record in Taiwan, as well as our recent involvement on the first commercial scale offshore wind power project in Japan, shows that we remain the leading international law firm operating in offshore wind not just in Taiwan but also in Asia more generally.”

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 sponsors on the Yunlin project, the common lenders and ECAs on Formosa 1 and, more recently, Formosa 2. The team is currently advising on all 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.