United Arab Emirates-based renewable energy company Masdar has finalised the €488m ($528.4m) financing of its 49% stake in the Baltic Eagle offshore wind farm in Germany.

The financing package for the 476MW wind farm was provided by financial institutions including ABN AMRO, Credit Agricole CIB, ING, Santander and Siemens Bank. Santander also served as the financial advisor for the transaction.

This is Masdar’s most substantial euro-denominated financing to date and represents its inaugural collaboration with Iberdrola and its first venture into the German market.

The Baltic Eagle wind farm, with an estimated value of €1.6bn, will commence operations by the end of 2024.

To be located 30km north-east of Rügen Island, it will benefit from a guaranteed minimum tariff of €64.6 per megawatt-hour (MWh) ($69.8/MWh) for its initial two decades of service.

The wind farm’s entire output has been pre-sold through long-term agreements, ensuring financial stability for the project.

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The strategic partnership between Masdar and Iberdrola was formalised in July 2023, focusing on the joint investment in the Baltic Eagle initiative.

In November, Masdar concluded the acquisition of a 49% interest in the project.

During COP28 in Dubai in December 2023, the two entities announced a €15bn strategic partnership agreement to explore collaborative opportunities in offshore wind and green hydrogen projects across key markets including Germany, the UK and the US.

Masdar is committed to advancing offshore wind projects globally and aims to achieve a 100GW renewable energy portfolio capacity by 2030.

In March 2023, Masdar closed the acquisition of a 49% stake in the Dogger Bank South offshore wind projects in the UK from German utility company RWE.

RWE will maintain 51% ownership and oversee the development, construction and operational management of the wind farms for their full lifespan.