Global law firm Clifford Chance has advised the lenders and export credit agencies on the incremental financing of the Hai Long offshore wind project in Taiwan through approximately NT$55 billion of new Taiwan dollar-denominated debt facilities. The incremental financing attracted support from the National Credit Guarantee Administration (NCGA) and 17 financial institutions, including 11 new domestic state-owned, commercial, and international banks.
The transaction is now supported by 35 financial institutions, including the seven Export Credit Agencies from the original financing. Construction activities are continuing and, once completed, Hai Long is expected to be one of the largest offshore wind projects in Asia.
Ross Howard, Lead Partner, said: “We are delighted to have supported the financiers and the Hai Long project and sponsors in successfully completing this incremental financing. We are particularly pleased to have assisted with the strong participation from the local bank market and the NCGA, which points towards deeper pools of liquidity becoming available for developers in the Taiwan offshore wind market.”
Tom Capel, Counsel, said: “This transaction is further evidence that, for capital intensive sectors such as offshore wind, there are ongoing opportunities for sponsors to re-leverage and optimise projects and for lenders to participate in projects as they derisk through the development cycle. We are pleased to have supported our clients and the Hai Long project in further developing the model for capital recycling and financing optimisation for mega-project.”
Partner Ross Howard and counsel Tom Capel led the team with support from lead associate Didi Hu, associates Haeyoung Kim and Seika Osafune and graduate lawyer Benjamin Batten. Partner Matt Buchanan, counsel James Thornton and associate Jeanette Lee advised on due diligence matters, while counsel Adam Wood and senior associate Allison Tan advised on hedging matters.
The transaction further demonstrates Clifford Chance’s market-leading experience advising on complex financings and investments that support the energy transition, including market-shaping refinancing and capital recycling transactions such as the refinancing of the Formosa 2 offshore wind project in Taiwan and the sale by a Global Infrastructure Partners fund of a solar portfolio in Taiwan.
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