Financial Close for 588 MW Offshore Wind Farm off Scotland

The Beatrice offshore wind farm off the coast of Scotland has achieved a successful financial close on a refinancing of its senior debt facilities.

The Beatrice offshore wind farm off the coast of Scotland has achieved a successful financial close on a refinancing of its senior debt facilities, Beatrice Offshore Windfarm Ltd (BOWL) has announced.

BOWL, a joint venture between SSE Renewables (40%), Copenhagen Infrastructure Partners (35%) and Red Rock Power Limited (25%), that owns the 588 MW wind project located 13km off the Caithness coast, Scotland.

The project, which is the fourth largest offshore wind farm in the world and Scotland’s largest is now complete. 84, 7MW (588MW) Siemens Gamesa turbines have been successfully installed and the JV expects the project to generate enough electricity to deliver clean, renewable power to over 450,000 homes per year. 

Michael Hannibal, Partner in CIP, said, “The closing of the refinancing of Beatrice on attractive terms and conditions marks another important milestone for the offshore wind project. CIP is pleased with the market response and the well-functioning cooperation with our partners, SSE and Red Rock, as well as with the lenders. This is a significant milestone in CIP’s offshore wind strategy, where we develop, construct and operate offshore wind projects globally and where we provide optimal financing solutions for offshore wind projects globally.”

According to a statement issued by the JV, the refinancing comprises primarily commercial bank debt and also includes an institutional tranche. Several of the project’s original lenders have remained in the refinancing and the project has also attracted investment from a number of newer lenders to the UK offshore wind market. The facilities were heavily oversubscribed, reflecting strong lender appetite for the offshore wind farm. The project reached full operations in May 2019, signaling the expiry of all material construction risks, enabling the refinancing to reach a successful conclusion. 

Jim Smith, Managing Director of SSE Renewables, said, “The strong appetite of the lenders for this refinancing reflects lending market confidence in BOWL and its three shareholders. It is a testament to the track record built up by the project through the successful delivery of the construction phase, with the project reaching full operations on time, and the strong operational performance to date.