PKA will provide EUR 120 million in the form of a subordinated loan to Project Gemini, Typhoon Offshore announced today.
It is the first time that a pension fund finances an offshore wind park in The Netherlands ahead of construction. The 600MW offshore wind farm that is currently being brought to financial close.
Michael van der Heijden, Managing Director of Typhoon Offshore , commented: “This is another important milestone for Gemini. The project cash flows allow for a sizeable subordinated loan tranche, and with The PKA pension group (PKA) on board we have now completed raising this layer. With the equity and subordinated debt now fully subscribed, all the efforts are now concentrated on raising the senior debt, a process that we officially started on 1 November.”
PKA will provide the majority of the EUR 200 million subordinated loan, subject to due diligence, with Northland Power Inc. providing the remaining 80 million in addition to its investment in 55% of the equity. PKA CEO Peter Damgaard at PKA said: “PKA is very pleased to finance the Gemini offshore wind farm. It will give the members of our five pension funds a good, stable return for many years to come. Also, it fits well with our climate profile and helps creating growth and jobs.”
[mappress]
Press release, December 2, 2013; Image: typhoonoffshore