Veja Mate offshore wind project in Germany reaches €1.9bn financial closure

30 June 2015 (Last Updated June 30th, 2015 18:30)

Highland Group, Siemens Financial Services and Copenhagen Infrastructure have arranged €1.9bn to finance the 402MW Veja Mate offshore wind project in the German North Sea.

Highland Group, Siemens Financial Services and Copenhagen Infrastructure have arranged €1.9bn to finance the 402MW Veja Mate offshore wind project in the German North Sea.

The financing has been carried out through a combination of equity, mezzanine loans and loans from banks and export credit agencies.

Copenhagen Infrastructure Partners (CIP) will provide a €250m mezzanine loan for the project via its fund Copenhagen Infrastructure II.

Siemens Project Ventures and Highland Group Holdings will offer the equity for the offshore development.

"Copenhagen Infrastructure Partners (CIP) will provide a €250m mezzanine loan for the project via its fund Copenhagen Infrastructure II."

State-owned German bank KfW has contributed around €430m for the project under its Offshore Wind Energy Programme.

Along with KfW and Danish export credit agency Eksport Kredit Funden sizmandated lead arrangers have contributed for the development. These are Commerzbank, Deutsche Bank, KfW IPEX-Bank, Natixis, Santander and SMBC .

Copenhagen Infrastructure Partner senior partner Christina G Sørensen said: "Veja Mate is a fully developed and procured offshore wind project, with a grid connection on the BorWin2 platform, which from 2017 will deliver stable returns for many years."

Following its financial closure, Veja Mate Offshore Project has awarded a contract to Royal Boskalis Westminster (Boskalis) and VolkerWessels (Volker Stevin International) for the design, procurement, fabrication, supply, transportation, installation and testing of 67 foundations at the facility.

The two firms will have 50:50 shares in the contract, which is worth €500m.

Construction for the project has been scheduled to start by the end of the year and is expected to be completed within the last quarter of 2016.