BayernLB

13-Feb-2013

BayernLB participates in financing the Butendiek offshore wind farm

Munich – The financing of the Butendiek offshore wind farm, in which BayernLB has participated, marks the realisation of a major project in the energy transition. The efforts of the German Government to create reliable conditions for incorporating power generated at sea into the network and to ensure the targeted cooperation of all project parties and the support of subsidy institutions such as the EIB, KfW and EKF have established the level of security demanded by sponsors and investors. Concluding the financing of this EUR 1.4 billion project sends an important signal for the German offshore market.

Financing of the loan capital amounting to approx. EUR 940 million was arranged by KfW-IPEX, UniCredit and Bremer Landesbank. BayernLB participated in the financing as Mandated Lead Arranger with a share of EUR 30 million. The group of investors, including the Marguerite Fund, Siemens Financial Services, wpd and two Danish pension funds (Industriens Pension and PKA), comprises industrial partners and long-term-oriented institutional investors.

The Butendiek Project encompasses the construction and operation of a North Sea wind farm around 32 kilometres to the west of the island of Sylt. 80 Siemens wind turbines, type SWT 3.6-120, with a total output of 288 megawatts will successively begin operating there by the middle of 2015. Butendiek's favourable conditions concerning wind volumes, depth of water and distance to the coast make it one of the most attractive offshore wind projects.

Developer wpd signed contracts with experienced offshore players, such as Ballast Nedam for the foundations, Visser & Smit Marine Contracting for the farm's internal cabling and Fabricom/GdF Suez for the electrical substation in order to complete the project. The network operator responsible, Tennet TSO, provides the connection to the electricity network via the Sylwin Cluster hub. After completion, the farm is forecast to generate approx. 1,290 GWh/a, which meets the energy needs of 370,000 households.

Alexander von Dobschütz, Manager of the Structured Finance Division at BayernLB: "As the Bank of the energy transition, BayernLB is happy to support this cornerstone of the renewable energy sector with a financing contribution and thereby to play a key role in expanding the offshore wind industry in Germany. The professional and cooperative interplay between project developers, investors, banks and the industry, a mature contractual structure and balanced risk allocation between the project parties, and the adjusted conditions were crucial to the success of this project financing."

As an expert in the energy sector and experienced project and export financier, BayernLB supports companies in the renewable energy sector with a focus on the areas of wind, solar, solar thermal energy and geothermal power.