Orsted enters $2.7b deal to sell stake in Taiwan

Bloomberg

Orsted, the world’s biggest developer of offshore wind parks, agreed to sell a stake in a farm off coast of Taiwan in a deal worth $2.7 billion.
The agreement hands Caisse de depot et placement du Quebec and Cathay PE, a Taiwanese private
equity fund, 50%
of Orsted’s 605 megawatt Greater Changhua 1 Offshore Wind Farm, Danish company said.
Shares in Orsted fell 1.5% after gaining in first moments of trading on Tuesday. The company, which has seen its value grow more than 80% this year, soared amid a broader rally in renewable stocks after President Trump signed a pandemic relief bill that includes extensions of tax credits for wind and solar power.

Martin Neubert, chief executive officer of Orsted Offshore, said the Taiwan sale shows that institutional investors are “playing an important role in the transition to renewable energy and low-emission economies.”
The farm is part of a 900 megawatt wind park that Orsted expects to have finished building in 2022.
Jeff Chang, the chairman of Cathay PE, said the agreement “represents an important milestone in Taiwan’s energy transition toward a low-carbon future.”
The transaction will be funded through a combination of equity and senior long-term debt facilities from 15 international and Taiwanese banks and two Taiwanese life insurance companies as well as five export credit agencies providing lending and guarantees.
The deal won’t affect Orsted’s 2020 financial outlook, and the buyers are expected to make payments in 2021 and 2022. Orsted’s divestment is subject to regulatory approval from the Taiwanese authorities, it said.