Legal & General invests £300m in Walney Extension windfarm

UK-based financial services group Legal & General has provided around £300m to support Danish pension funds PKA and PFA in the acquisition of a 50% stake in the 660MW Walney Extension offshore windfarm from Ørsted.

The fund was provided in the form of long-term acquisition debt and will support the acquisition, which is valued at around £2bn.

This latest deal was financed by Legal & General Investment Management’s Real Assets platform (LGIM Real Assets) on behalf of its customers including Legal & General Retirement (LGR).

Acting as the principal investor for LGIM Real Assets on this deal, LGR provided £250m of the circa £300m long-term acquisition debt.

LGIM Real Assets senior investment manager Charles-Henry Lecointe said: “This deal represents our first offshore wind investment for LGIM clients.

“We have a strong appetite for future investments into this sector, as well as other renewable sectors, recognising the importance the offshore wind industry can have for providing clean energy and stimulating job growth in the UK.

“Legal & General continues to be committed to investing in key UK infrastructure assets, which will have a major impact on stimulating economic growth while ensuring long-term cash flow for pension funds.”

The Walney Extension facility will be situated in the Irish Sea, around 19km west of the Walney Island coast in Cumbria, England.

Currently under construction, the windfarm will be able to supply enough power for more than 590,000 homes once commissioned.

The Walney Extension project is expected to support up to 185 full-time jobs annually during its 25 years of planned operations.