Eksfin Provides €180m Backing Seaway 7 Cable Installation at Wind Park

Seaway 7 vessel in action during wind farm construction. (Photo Seaway 7)

Published Oct 1, 2023 8:27 PM by The Maritime Executive

[By: Eksfin]

State-backed export credit agency Export Finance Norway (Eksfin) provides NOK 2bn (EUR 180m) in loan financing to the Hai Long wind park in the Taiwan Strait on the back of services rendered by Seaway 7. The transaction increases Eksfin’s total financing commitment to the global offshore wind market towards EUR 2,6 billion.

Joint-venture Hai Long development partners Northland Power Inc of Canada and Japan’s Mitsui & Co.,Ltd. won construction approval for the project in March this year. Situated between 45 and 70 kilometres off Taiwan’s Changhua coast, on completion the 1 gigawatt (GW) offshore wind park will be the largest in Taiwan with capacity to supply clean energy to more than one million households. Full commercial operation is expected in 2026/2027, with energy supplied according to power purchase agreements already in place.

Eksfin paves the way for private capital 
Offshore wind projects typically demand more capital than developers and their banks can finance on their own. State-backed guarantees from Eksfin carry the highest AAA credit rating and facilitates financing from private banks.

In the case of Hai Long, project financing will be provided by over 15 international and local lenders with support not only from Eksfin but also multiple other Export Credit Agencies (ECAs) including Export Development Canada (EDC), Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Export Finance Australia (EFA) and Credendo – Export Credit Agency of Belgium.

Eksfin heads for another offshore wind milestone
This autumn, Eksfin is set to reach a total of NOK 30bn (EUR 2,6bn) in loans and guarantees linked to export contracts to offshore wind parks worldwide, amid expectations of further growth within renewables and green technology. “Financing Norwegian deliveries to offshore wind projects globally is one of our core strategic priorities. I am very pleased that together with Seaway 7 we have succeeded in securing this important contract that strengthens its market position in Taiwan,” said Eksfin managing director Tone Lunde Bakker.

Lunde Bakker adds that in addition to Taiwan, Eksfin aims to increase Norwegian exports to the Far East including South Korea and Japan – key offshore wind markets where Norwegian companies are expected to establish a strong position.

Find out more about long-term buyer financing and loan guarantees from Eksfin here.

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