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Deutsche Bank closes hedge for offshore wind farm

Deutsche Bank has announced it has successfully closed a deal contingent interest rate swap on TWD90bn project finance for the development of a 589 MW offshore wind farm on the coast of Changhua County, Taiwan.

“Deutsche Bank is pleased to have successfully closed this deal contingent interest rate swap during extremely volatile market conditions,” noted Cynthia Chan, Taiwan country chief and head of Investment and Corporate Banking at Deutsche Bank.

The investment consortium, led by Copenhagen Infrastructure Partners (CIP) through its funds CI II and CI III, with two Taiwan life insurers, closed the largest ever wind farm project finance in Taiwan at the end of February.

“Deutsche Bank is pleased to provide finance and a sophisticated structuring solution to support Copenhagen Infrastructure Project’s participation in the rapid development of Taiwan’s renewable energy industry,” said Dominik Thumfart, global co-head of TIE Origination at Deutsche Bank.

The bank is the sole pre-hedging and sole hedging coordinator for a deal contingent hedge on notional project finance of approximately US$3 billion (TWD90bn). The bank is also among 25 banks in the syndicate group of lenders.

This is the second such deal contingent interest rate swap transaction delivered by Deutsche Bank for the wind farm project in Taiwan. In 2019, the bank broke new ground for the Yunlin project, arranging and syndicating the world’s first deal contingent hedge on project finance to support investment into Taiwan’s nascent renewable energy sector.

“Collaboration across geographies and product groups between teams in teams in Asia and Europe enabled Deutsche Bank to offer integrated risk management and financing solutions through our Global Credit Trading-Infrastructure & Energy, Structured Export Finance and Risk Solutions,” Thumfart added.

The Changfang and Xidao wind farm project off the coast of Changhua County is the latest wind energy project in Taiwan’s emerging renewables sector that has attracted foreign investors in the transition to renewable energy.

“Deutsche Bank is extremely proud to deliver this innovative risk solution, particularly as it supports European investment in Taiwan’s emerging renewable energy industry. The next decades will see significant change as industries and economies transition for a low carbon world, and Deutsche Bank is pleased to play a role in supporting Taiwan’s journey to renewable energy,” Chan added.


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