Orsted has sold 50% of its 583MW Greater Changhua 4 Offshore Wind Farm to Cathay Life Insurance.
The transaction is worth DKK 11.6 billion (€1.55b), and is set to be paid across this year and next.
All regulatory approvals have been obtained, and the closing of the transaction is expected before the end of the year, Orsted said.
As part of the agreement, Orsted will construct the Greater Changhua 4 Offshore Wind Farm under a full-scope EPC contract.
Orsted will also provide long-term operations and maintenance (O&M) services from its O&M hub at the Port of Taichung.
"We’re satisfied with the transaction as it represents another important milestone in our partnership and divestment programme and ensures further progress towards our mid- and long-term targets”, Deputy CEO and Chief Commercial Officer at Orsted Rasmus Errboe said.
"This investment underscores our dedication to supporting the government's renewable energy transition while simultaneously generating stable, long-term returns that align with the investment goals of the insurance sector”, added Cathay Life Insurance President Andrew Liu.
The financing package, which was structured and led by Ørsted, will be supported by guarantees from six export credit agencies (ECAs): Credendo, the Export and Investment Fund of Denmark (EIFO), Export Finance Australia (EFA), Korea Trade Insurance Corporation (KSURE), National Credit Guarantee Administration (NCGA), and UK Export Finance (UKEF).
"The transaction not only underlines their confidence in Ørsted's track record in building and operating offshore wind farms but also sets a new green investment paradigm in Taiwan", said Orsted Senior Vie President and APAC CEO Per Mejnert Kristensen.
The total 920 MW capacity of Greater Changhua 2b and 4 is covered by a 20-year fixed-price corporate power purchase agreement with the Taiwan-based semiconductor company TSMC.
The Greater Changhua 2b and 4 offshore wind farms are located next to the 900 MW Greater Changhua 1 and 2a, which are in full operation.
The 605 MW Greater Changhua 1 is co-owned by Ørsted (50 %) as well as Caisse de dépôt et placement du Québec (CDPQ) and Cathay PE, who have a combined ownership stake of 50 %.
