CIP sells minority stake in Taiwanese duo

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Copenhagen Infrastructure Partners (CIP), on behalf of the Copenhagen Infrastructure II K / S (CI-II) and Copenhagen Infrastructure III K / S (CI-III) funds, has reached an agreement to sell a 25% stake in the Taiwanese company 595MW ChangFangand Xidao(CFXD) from offshore wind farms to Global Power Synergy Public Company Limited (GPSC). GPSC will acquire the interest through its wholly owned subsidiary, Global Renewable Synergy Company Limited (GRSC).

CI-II and CI-III will continue as majority co-owners of the project and lead the construction phase towards commercial operation in 2024.

GPSC is a subsidiary and an innovative energy flagship of PTT Public Company Limited (“PTT”), Thailand’s largest energy company. By partnering with GPSC, CFXD also contributes to the new policy towards southern Taiwan by strengthening cooperation between Taiwan and Thailand in the field of renewable energies.

Located 13-15 km off the coast of Changhua County in Taiwan, the CFXD wind farm has a planned capacity of 595 MW. CFXD reached financial close in February 2020 and construction of the offshore wind farm with a high share of local Taiwanese content is progressing as planned towards the commercial operation date in the first quarter of 2024. It will include 62 MHI Vestas V174-9 wind turbines, 5 MW.

CFXD is funded by a combination of equity and senior loans from a consortium of 25 international and Taiwanese banks and financial institutions as well as 6 export credit agencies. CIP acquired the CFXD project in 2017. The project was awarded the grid award in 2018 and entered into a 20-year PPA with state-owned Taiwan Power Company in 2019. Local Taiwanese suppliers and partners include Century Iron & Steel Industrial Company Limited, TECO, Hung Hua Construction and CTCI.

GPSC, through GRSC, will enter the project as a co-owner alongside CI-II and CI-III, as well as local Taiwanese shareholders, who hold a minority stake in the project.

“We welcome GPSC as a co-investor and partner of CFXD. The transaction highlights the significant potential of offshore wind in Taiwan and other Asian countries and recognizes CIP’s added value to the project during the development phase and the initial construction phase. said Michael Hannibal, partner at CIP.

The transaction is subject to the usual closing conditions, the filing of a foreign investment approval and the filings with the Ministry of Economic Affairs of Taiwan ROC, and after the closing of the transaction, CI-II and CI-III will remain the controlling shareholders and operators of the offshore CFXD. wind farm.

FIH Partners acted as exclusive financial advisor and White & Case acted as legal advisor to CIP on the transaction.

For more information on the Taiwan offshore wind market as a whole,
Click here. You can also see projects all over the world on 4C Offshore Interactive map.



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