Caisse de dépôt et placement du Québec and Cathay Private Equity Co., Ltd. acquired 50% stake in 605 MW Greater Changhua 1 Offshore Wind Farm in Taiwan from Ørsted A/S.
November 02, 2021
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Caisse de dépôt et placement du Québec and Cathay Private Equity Co., Ltd. entered into an agreement to acquire a 50% stake in 605 MW Greater Changhua 1 Offshore Wind Farm in Taiwan from Ørsted A/S (CPSE:ORSTED) for TWD 75 billion on December 28, 2020. The consideration will be paid during 2021 and 2022. Caisse de dépôt et placement du Québec and Cathay Private Equity's 50% stake in Greater Changhua 1 will be funded through a combination of equity and senior long-term debt facilities from 15 international and Taiwanese banks and 2 Taiwanese life insurance companies as well as 5 export credit agencies providing lending and guarantees. As of January 13, 2021, Deutsche Bank AG (ETR:DBK) confirmed its involvement in arranging the $2.68 billion (TWD 75.04 billion) financing the transaction. Namely, Cathay United Bank, CTBC Bank, E-SUN Bank, Taipei Fubon Bank, Cathay Life Insurance Co., Taiwan Life Insurance Co., BNP Paribas, Crédit Agricole, Deutsche Bank, DZ Bank, HSBC, Oversea-Chinese Banking Corporation, Korea Development Bank, Siemens Bank, Société Générale, Standard Chartered and Sumitomo Mitsui Banking Corporation. Post completion, Caisse de dépôt et placement du Québec will the majority owner among the two new partners and Ørsted will own 50% of the wind farm. The transaction is subject to regulatory approval from the Taiwanese authorities. The proceed will be used to pay for the EPC services for Greater Changhua 1. The transaction is expected to close in quarter 2, 2021. HSBC Bank plc acted as financial advisor to Ørsted A/S (CPSE:ORSTED). Rothschild (Canada) Holdings Inc. acted as financial advisor to Caisse de dépôt et placement du Québec. Jason Humphreys of Allen & Overy LLP in Singapore, Christopher Andrew and Sheila Connell of Allen & Overy LLP in London acted as legal advisors to Ørsted A/S in this transaction. Ross Howard, Jordan Knowles, Dominik Kepinski, Valerie Kong, Leonhard Rudolf, Irina Steinberg, Elizabeth Wood, Mark Hee, Emma Clarke, Paul Landless and Miles Binney of Clifford Chance acted as legal advisor to Caisse de dépôt et placement du Québec.
Caisse de dépôt et placement du Québec and Cathay Private Equity Co., Ltd. acquired 50% stake in 605 MW Greater Changhua 1 Offshore Wind Farm in Taiwan from Ørsted A/S (CPSE:ORSTED) on November 3, 2021. Alex Wong, Stephanie Keen and Danielle Wu of Hogan Lovells Lee & Lee, Hogan Lovells Hong Kong and Hogan Lovells acted as legal advisors to Cathay Private Equity Co., Ltd.
Orsted A/S is one of the leading Danish energy groups. Net sales break down by activity as follows:
- development, construction and operation of offshore wind farms (72%): 17.8 TWh of wind energy produced in 2023. At the end of 2023, the group had an installed capacity of 8.9 GW;
- production and distribution of electricity, gas and bioenergy (24.6%): electricity (2.6 TWh sold in 2023), gas (16.9 TWh sold) and thermal energy (6.6 TWh produced). In addition, the group is developing an oil transport activity;
- development, construction and operation of onshore wind and solar PV farms (3.3%): operation of onshore wind and solar farms with an installed capacity of 4.2 GW;
- other (0.1%).
Net sales are distributed geographically as follows: Denmark (79.3%), the United Kingdom (12.8%), the United States (2.6%), Germany (2.2%), Taiwan (1.3%), Ireland (0.8%), Sweden (0.5%) and other (0.5%).
Caisse de dépôt et placement du Québec and Cathay Private Equity Co., Ltd. acquired 50% stake in 605 MW Greater Changhua 1 Offshore Wind Farm in Taiwan from Ørsted A/S.