Deutsche Bucht reaches financial close

Green Giraffe advised on the EUR 988 M debt raise for the 252 MW Deutsche Bucht offshore wind farm, located 95 km North West of the island of Borkum in the German North Sea.

The Deutsche Bucht (DeBu) offshore wind farm has reached financial close. The project, located approximately 95 km North West of the island of Borkum in the North Sea, is scheduled to be completed by the end of 2019. It will have a capacity of 252 MW and comprises 31 MHI-Vestas V164 wind turbines. Green Giraffe was the sole financial advisor to DeBu, which was initially owned by Highland Group Holdings and is now 100% owned by Northland Power Inc. 

Green Giraffe was first mandated by Highland on DeBu in 2012 and has worked on the project since, including advising on the successful bidding for additional capacity. Over the last two years Green Giraffe has been focussed on managing the commercial aspects of the project, overseeing the negotiation and signing of the main project contracts for turbine supply, balance of plant, and operations and maintenance, advising on the sale of the project to Northland Power Inc, whilst arranging in parallel a non-recourse debt financing in an amount of EUR 988 million provided by 10 commercial banks. Both the equity and debt transactions closed in August 2017 and construction has now started.

Project highlights:

• 252 + 17 MW offshore wind farm, with completion scheduled for 2019
• EUR 1.3 billion
• Will produce over 1 TWh of electricity per annum
• The original 210 MW site is complemented by an additional 42 MW won in an auction organised by BnetzA in 2015

In addition, the project is investigating the development of two additional demonstration turbines utilizing suction bucket foundations. If built they will contribute an additional 17 MW of capacity.

Deal highlights:

• 100% sale from Highland Group Holdings to Northland Power Inc.
• Equity transaction closed on 17 August 2017
• Project financed transaction with only commercial lenders
• Debt transaction closed on 18 August 2017
• First financing of an MHI-Vestas turbine in Germany