Windreich AG Secures Finance for Its Offshore Wind Park Project
Willi Balz, Chief Executive Officer of the Windreich AG, has announced that the company has secured total project financing for its first offshore wind park Global Tech I and emphasizes, ‘With its 400 MW capacity, it is the first offshore project worldwide to obtain financing which directly brings the shift to renewable energies one step closer’.
By agreeing to finance Global Tech I, the banking community has sent a strong signal in its belief that the Windreich AG will successfully realize its offshore projects. Certainly this event will trigger strong interest amongst investors and banks worldwide to partake in the developments in the German North Sea. The Windreich AG has of course two further offshore wind park projects already pending in order to cover anticipated demand.
Tim Kittelhake, a manager at Windreich AG and responsible for the Global Tech I project, stated that: ‘It took a lot of hard work, but it was possible to fulfill all requirements in 2011 necessary for complete project financing’. Approval to feed electricity into the Federal Network had already been granted in 2009, and in the meantime, Windreich was able to form several strategic partnerships. The wind turbines will be produced by the Areva Wind GmbH, the Hochtief AG will be responsible for offshore construction, and Alstrom Grid GmbH will deliver the transformer substations.
The project also required a large amount of equity (€ 700 Mio.) which the Windreich AG was able to raise in 2008 and 2009 despite the financial crisis.
The Windreich AG will also allow further investors to participate in a range of up to 15% of Global Tech I.
The financing for this 400 MW undertaking was secured with over a dozen commercial banks including the EIB as well as the KfW IPEX-Bank.
Willi Balz expressed his thanks to Branko Cepuran (EIB) as well as Peter Schäfer and Peter Göpfert of the KfW. The project was also made possible due to the improved financing conditions negotiated by Windreich’s deputy Chairman of the Board, Dr. Walter Döring.
Windreich’s next offshore project, MEG I has already been listed among the top 15 most promising offshore projects according to the Magazine Wirtschaftswoche. The Deutsche Bank has been pre-selected to structure the financing.
It is expected that financing will be somewhat easier to secure due to an in-place EPC-Contract secured by Windreich’s subsidiary company WKU AG. The Tilke GmbH & Co. KG will take over the project management. Company-founder, Hermann Tilke is the most well-known Formula 1 racetrack designer who has built 7 of the 19 Formula 1 race tracks including nearby hotels, harbors, and surrounding infrastructure. Just last week, Hermann Tilke handed-over his most recent Formula 1 creation in India to its new owner. Having Tilke involved streamlines the project management thereby bringing the needed security for the involved insurance companies and financing banks. Windreich’s third offshore project, Deutsche Bucht is expected to receive approval to feed electricity in the national grid.
According to an industry report, the Windreich AG has secured property rights for over 35% of all possible offshore wind park projects in the North Sea giving the company a key market advantage. The German North Sea is recognized as the world’s best location for offshore wind parks.
Windreich issued a corporate bond (WKN A1H3V3) on July 4, 2011 to secure further financing for offshore projects. Of the € 75 Mio. issued, € 56 Mio. were allotted.
Source: windreich, November, 1, 2011;