MUFG is pleased to confirm the financial close of the limited-recourse financing for the 25MW Provence Grand Large floating offshore wind pilot farm ("PGL") in France, supporting a consortium comprising EDF Renewables and Enbridge Eolien France 2 S.à.r.l, a subsidiary of Enbridge Inc. and CPP Investments.

MUFG acted as Mandated Lead Arranger and Hedge Provider on the deal, which closed in November 2021. The total investment amounted to EUR 1300m.

The pilot project is located in the Mediterranean Sea, nearby the city of Marseille approximately 17 km off the coast from Port-Saint-Louis-du-Rhône, in the South East of France. The PGL will feature innovative technologies comprising three 8,4 MW Siemens Gamesa wind turbines installed on floating foundations that will be manufactured by SBM Offshore, with the project being commissioned in 2023. The Provence Grand Large pilot project will enable the confirmation of industrial principles and the improvement of scientific, technical and environmental knowledge in order to pave the way for future commercial projects planned by the government off the Mediterranean coast.

Floating offshore wind is considered a key pillar in the energy transition regime under the Paris Agreement. MUFG is proud to be part of the financing of what is the first floating offshore windfarm constructed in France and the first using the Tension-leg platform (TLP) technology for its floaters in the world, following the Bank's involvement in financing the first offshore wind project ever procured in France, the Saint-Nazaire offshore wind farm.

This landmark transaction also represents the first floating offshore wind farm to have successfully closed a limited-recourse financing worldwide, and is a key strategic achievement, demonstrating MUFG's willingness and ability to continue to be a leader in the sector as it evolves. MUFG has a strong desire to build on the expertise to support clients globally and particularly in France, Norway, Japan, South Korea and the US, which have been identified as key markets where floating wind is expected to be deployed.

Stephen Jennings, Head of Energy within the Structured Finance Office for EMEA, said:

"With 80% of offshore wind resources located in waters over 60 metres in depth and only accessible by floating technology, this project marks an important step towards tapping into that resource.

"Of the 350GW of offshore wind expected to be added from 2030 to 2040, floating is expected to make up to 20-30% and we shall look back at projects like PGL as the pioneers in this critical decarbonising sector.

"We are proud to be associated to the project team with this truly landmark transaction."

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