JBIC-Project Financing for Hai Long Offshore Wind Farm Project in Taiwan

Supporting Renewable Energy Power Generation Project of Japanese Company under GREEN Operations.

Region: Asia Infrastructures Environment Overseas Investment Loans Guarantees Project Finance

The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today loan agreements in project financing*1 collectively amounting to up to approximately JPY101.2 billion with Hai Long 2 Offshore Wind Power Co., Ltd. and Hai Long 3 Offshore Wind Power Co., Ltd. (collectively Hai Long) of Taiwan, which are invested in by multiple entities, including Mitsui & Co., Ltd. (Mitsui) and a Canadian company Northland Power Inc., for an offshore wind farm project in Taiwan. The loans are co-financed with private financial institutions and others*2, bringing the total co-financing amount to approximately TWD117.1 billion. JBIC will also provide an approximately TWD4.7 billion guarantee for a Taiwan dollar-denominated onshore loan by private financial institutions. In addition to JBIC's guarantee, Nippon Export and Investment Insurance (NEXI) and other countries' export credit agencies will provide an insurance or guarantee.

In this project, Hai Long, in which Mitsui holds equity shares, will build, own, and operate a 1,022 MW offshore wind farm located off the coast of Changhua County, Taiwan. For JBIC, this is the first financing offering for an offshore wind farm project in Asia.

In March 2022, Taiwan announced Taiwan's Pathway to Net-Zero Emissions in 2050, according to which Taiwan aspires to increase the proportion of renewable energy in its power supply to 60% to 70% by 2050. The loans are in line with the renewable energy transition policy of Taiwan and will contribute toward preserving the global environment through the reduction of greenhouse gas emissions.

In the Infrastructure System Overseas Promotion Strategy 2025 (supplemented in June 2023), the Government of Japan, in support of the transition to carbon neutrality and decarbonization, established a policy of providing support for quality energy and electricity infrastructure that harnesses sophisticated technologies to reduce the burden on the environment in a way that is compatible with the energy policy of the host countries. The loans are in line with this policy and will financially support an overseas infrastructure project in which a Japanese company has invested and will be involved in terms of its operation and management for a long term, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.

As Japan's policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their infrastructure businesses toward decarbonization by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.

Note

*1

Project finance is a financing scheme in which repayments for a loan are made solely from the cash flow generated by the project.

*2

Mizuho Bank, Ltd., MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, SBI Shinsei Bank, Limited, Taipei Fubon Commercial Bank Co., Ltd., CTBC Bank Co., Ltd., Taiwan Life Insurance Co., Ltd., Fubon Insurance Co., Ltd., Credit Agricole Corporate and Investment Bank, Hongkong and Shanghai Banking Co., Ltd., Standard Chartered Bank, Deutsche Bank AG, Australia and New Zealand Banking Group Limited, DBS Bank Limited, and Korea Development Bank

For further information

Mr.Oono or Mr.Iseki

Press and External Affairs Division, Corporate Planning Department

Tel: +81-3-5218-3100

Fax: +81-3-5218-3955