Turbine maker Vestas has set up an export credit agency-backed deferral facility for three wind farms developed by Australian subsidiaries of Global Power Generation. The two-year A $ 415 million (US $ 319 million) facility will be used to purchase receivables related to the Vestas wind turbine installation for the Ryan Corner, Hawkesdale and Berrybank Two wind projects in the South. is from the state of Victoria.

This is the first time Vestas has offered an ECA-backed payment deferral facility anywhere in the world. Wind turbine exports will be covered by Sinosure, in collaboration with EKF from Denmark. The facility is provided by Banco Santander and Deutsche Bank.

The projects are sponsored by local Australian subsidiaries of Global Power Generation (GPG), which is a joint venture between Spanish multinational Naturgy and the Kuwait Investment Authority.

“We are delighted to partner with Vestas and support the short-term financing needs of General Power Generation,†said Matthew Moodey, Asia-Pacific manager of natural resource financing and trade and loan structuring at Deutsche. Bank, adding that this illustrates the bank’s strong focus on sustainable finance in the region.

“This is a historic transaction for Vestas. This demonstrates our ability to structure innovative financial solutions by working with experienced global institutions like Deutsche Bank, â€said Glenn Sundaram, Director, Head of Financial Solutions for Asia Pacific at Vestas. “Their long-standing relationship with China Export & Credit Insurance Corporation has been extremely valuable throughout the process of structuring this transaction.â€

According to Vestas, GPG was looking for short-term financing options to improve the returns on its projects at the three wind farms. During a nine-month process, Vestas Financial Solutions in Asia Pacific structured the facility to extend payment terms by two years, using Santander, Deutsche, Sinosure and EKF. Norton Rose Fulbright was Vestas’ attorney.

Linked to sustainability

In another financing, Vestas signed a € 2 billion (US $ 2.42 billion) revolving multi-currency credit facility on April 29.

The facility’s interest rate margin will be adjusted based on sustainability-related performance targets, marking the first time the Company has committed to sustainability-related financing. These targets measure Vestas’ ability to reduce its own carbon footprint and improve workplace safety while subsequently adding ambitious targets to improve the carbon footprint throughout its supply chain. The performance targets will also cover ambitions for a more sustainable use of materials and increased recyclability throughout the turbine value chain.

HSBC Continental Europe (formerly HSBC France) and Skandinaviska Enskilda Banken (SEB) coordinated the lead managers and mandated bookkeepers. In addition, Banco Santander, Citi, DNB, Nordea, Societe Generale and Unicredit have joined as mandated principal arrangers and bookrunners, while BNP Paribas, Danske Bank, JP Morgan and Standard Chartered have joined as arrangers. principal representatives.

HSBC was the institution’s documentation agent. SEB was the facilities officer and sustainable development advisor.

The facility, which is available for general business purposes, has a five-year term with two one-year extension options. It replaces Vestas’ undrawn € 1.15 billion revolving credit facility signed in 2017.