Danish renewable energy developer Orsted on Monday announced that it has signed $783 million (NTD25 billion) sustainability-linked revolving loan facility for its offshore wind farms in Taiwan, with a consortium of financial institutions, including all of Taiwan’s state-owned banks.
The Orsted’s loan deal was facilitated by Bank of Taiwan, CTBC Bank, and BNP Paribas Taipei Branch, which will jointly act as mandated lead arrangers and bookrunners. The financing, guaranteed by Orsted A/S, attracted oversubscription from both domestic and foreign banks.
The loan involves sustainable initiatives related to Orsted’s business operations as key performance indicators to ensure that offshore wind projects are constructed and operated in harmony with Taiwan’s biodiversity.
Kasper Kiim Jensen, vice-president of treasury and capital planning at Orsted, said that the financing signified more than just numbers and reflected Orsted’s commitment to sustainability.
“We are delighted to see strong support shown from the banking community in Taiwan with the participation in this transaction of 15 banks, including state-owned institutions. This represents our dedication not only to advance offshore wind development in Taiwan, but also to ensure it is undertaken in a sustainable manner,” Jensen added.
Christy Wang, Chairperson for Orsted Taiwan, said that the proactive involvement of domestic and foreign banks is another milestone in the advancement of offshore wind financing in Taiwan.
“Orsted is committed to introducing various green financing tools and joining hands with our financial partners to build a stronger offshore wind ecosystem, contributing to the green energy buildout and Taiwan’s decarbonization journey,” Wang added.
The sustainability-linked revolving loan facility was finalised with participation from the state-owned banks including Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taiwan Business Bank, Taiwan Cooperative Bank and The Export-Import Bank of the Republic of China.
Also participating in the financing were CTBC Bank, BNP Paribas Taipei Branch, DBS Bank (Taiwan), E.Sun Commercial Bank, JPMorgan Chase Bank Taipei Branch, and Taishin International Bank.
The loan will help the offshore wind farm sector in Taiwan, which expects offshore wind capacity increase by 15 GW between 2026 and 2035, with the expectation of installed capacity increasing by approximately 1.5 GW per year. Corporate buyers are being encouraged to enter into CPPAs to financially support the wind farm development.
Taiwan has 143 offshore wind farm projects of which 4 currently operating, 4 where construction has progressed enough to connect the turbines and generate electricity, 3 are in the build phase, and 9 are either consented or have applied for consent. The remaining projects are under various stages of progress.
The Orsted vision is a world that runs entirely on green energy and the company develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants.
Orsted is recognised on the CDP Climate Change ‘A’ List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi).