After completing the transaction with Global Infrastructure Partners (GIP) for the sale of 50% of the Borkum Riffgrund 2 offshore wind farm yesterday, 11 December, Ørsted now expects its EBITDA in 2017 to materialise at some DKK 21 billion (approx. EUR 2.8 billion), compared to the previously guided range of DKK 19-21 billion.
Jacket foundation for offshore substation on its way to the Borkum Riffgrund 2 site. Image source: Ørsted (cropped)
The total sales price of EUR 1.17 billion includes the acquisition price of 50% of the project and the commitment to fund 50% of the payments under a full-scope engineering, procurement and construction (EPC) contract. GIP will pay the acquisition price in 2017, and make the EPC contract payments during 2017 and 2018.
Global Infrastructure Partners is also the 50% owner of Ørsted’s Gode Wind 1 offshore wind farm, also located in Germany.
As a part of the Borkum Riffgrund 2 transaction, GIP will issue a rated project bond to a consortium of lenders, coordinated by Talanx, who additionally acted as cornerstone lender. The consortium includes many of the Gode Wind 1 lenders and expands the lender group to include Wiener Städtische Versicherung, DekaBank, NN Investment Partners, Edmond de Rothschild AM’s BRIDGE platform and La Banque Postale Asset Management.
“We’re pleased to build on our successful partnership with GIP and are delighted that not only have many of the same lenders returned, but new lenders have joined the consortium. We appreciate the vote of confidence this demonstrates in Ørsted as the recognised market leader in offshore wind,” said Ole Kjems Sørensen , Senior Vice President of Ørsted Wind Power.
The 450MW Borkum Riffgrund 2 is currently under construction and is expected to be fully commissioned in 2019. Ørsted, which is building the offshore wind farm under a full-scope EPC agreement, will provide long-term operations and maintenance services from its O&M base in Norddeich and a route to market for the power production from GIP’s 50% share of the wind farm.