Fid Financial Close

In late May 2016, Beatrice Offshore Windfarm Ltd (BOWL) reached financial close on the 588 MW Beatrice offshore wind farm in the Outer Moray Firth, giving the owners the green light to proceed to construction. The project represents a total investment of around GBP 2.6 billion and is owned by SSE (40%), Copenhagen Infrastructure Partners (35%) and SDIC Power (25%). At this point it was highlighted as one of Scotland’s largest private infrastructure investments and the largest project to have successfully reached financial close under the UK’s Contract for Difference (CfD) regime. Prior to close, SSE had indicated it expected to achieve financial close by the end of May 2016, enabling onshore construction in 2016, offshore construction from 2017 and full operation by 2019. The financing structure is based on approximately 60% debt, underpinned by about GBP 1.9 billion of non‑recourse senior debt provided by a consortium of 13 commercial banks together with the European Investment Bank (EIB) and Danish export credit agency Eksport Kredit Fonden (EKF). This includes a GBP 525 million, 19‑year long‑term EIB loan, additional EKF-backed debt, and a further GBP 70 million in senior debt from Copenhagen Infrastructure II K/S. MUFG acted as financial adviser from early 2015, developing a financing structure that maximised shareholder returns while maintaining robust interest cover, and Linklaters advised the sponsors on all aspects of the construction and financing. Collectively, these arrangements secured the full funding required to commence construction of Beatrice.