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SINGAPORE, April 26, 2021 /PRNewswire/ -- Bringing together five high-profile parties including Global Power Generation (GPG), Banco Santander, Deutsche Bank AG, EKF and Sinosure, Vestas has led the largest known payment deferral facility for a renewable energy project in the world. The facility covers three Australian projects, and totals $415 million AUD.
GPG explored short term financing options to improve its project returns on the Hawkesdale, Ryan Corner and Berrybank Two wind farms. Over a nine-month process, Vestas' Financial Solutions in Asia Pacific structured the Export Credit Agency (ECA) backed facility to extend the payment terms by two years.
Importantly, this is the first time that Vestas has offered an ECA backed payment deferral facility anywhere in the world. The mechanism will provide another path for financial backing and project returns to the relevant customers, driving Vestas' ambition to accelerate the deployment of renewables and continue to provide energy solutions throughout the value chain.
As a result, relevant customers throughout the world can now benefit from this new financing mechanism.
"Vestas is proud that our customers not only utilize our leading technology, but also turn to us for our market experience and broad energy solutions which aim to bring the best return of investment for their wind farm," said Purvin Patel, President of Vestas Asia Pacific. "We are pleased to continue supporting our valuable partnership with Global Power Generation, EKF, Banco Santander, Deutsche Bank AG as well as collaborate with Sinosure to lead its pathway into Australia and Asia Pacific's promising market."
"This payment deferral facility is a landmark transaction for Vestas that demonstrates our capability to structure innovative financial solutions," said Glenn Sundaram, Head of Financial Solutions Vestas Asia Pacific. "Our ability to leverage strong relationships and collaborate with global financial institutions, ensured we tailored a solution that optimised GPG's return across these three projects. In this instance, I would like to thank Deutsche Bank, Banco Santander, Vestas' export credit partners, EKF and Sinosure, our external counsel, Norton Rose Fulbright and importantly the team at GPG for their fantastic support throughout the structuring of these facilities."
"Undoubtedly, this has been a very important transaction for Global Power Generation. It is a significant step forward in the consolidation of our presence in the Australian market as one of the leading independent producers of renewable energy allowing us to enhance financial returns and efficient allocation of capital for new projects. We sincerely appreciate the commitment and support of all the parties involved in the deal, with a special mention to the excellent work performed by Vestas' Asia Pacific Financial Solutions team," said Alfonso Egana, GPG's Chief Financial Officer.
"EKF has supported the financing of many Vestas wind farms throughout Asia Pacific and we hope to do more in the future. We are excited that our support to this payment deferral structure helped Vestas secure the orders and GPG get the best possible construction financing of the projects," said Peter Boeskov, Chief Commercial Officer, Global Wind & Structured Finance. "EKF we will remain focused on providing financial solutions and support to sustainable projects like these."
"This new financial solution led by Vestas demonstrates our ability to work with sustainable energy providers, buyers/operators and ECAs to structure cross-border ESG transactions which make the sustainable options commercially viable. Our high standards for ESG compliance and our world-class financial structuring/pricing capabilities provided the necessary comfort to all parties that this transaction will be received by the market as a high-end ESG transaction, establishing important benchmarks for the renewable energy sector in Australia," said Kamran Khan, Deutsche Bank's Head of ESG for APAC.
"We are delighted to support long-standing relationships like Vestas, Global Power Generation and EKF to deliver this innovative financing solution in the renewable energy space," said Nicolás Cotoner, Head of Global Transaction Banking - APAC at Santander CIB. "Supporting clients who are at the forefront of the energy transition is a key focus for Santander, and by leveraging on our ECA expertise and in close collaboration with Vestas it has been possible to execute this tailor-made structure adding value and product diversification to our customers."
About Vestas
Vestas is the energy industry's global partner on sustainable energy solutions. We design, manufacture, install, and service onshore and offshore wind turbines across the globe, and with more than 132 GW of wind turbines in 82 countries, we have installed more wind power than anyone else. Through our industry-leading smart data capabilities and unparalleled more than 113 GW of wind turbines under service, we use data to interpret, forecast, and exploit wind resources and deliver best-in-class wind power solutions. Together with our customers, Vestas' more than 29,000 employees are bringing the world sustainable energy solutions to power a bright future.
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