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Linklaters LLP

12/02/2021 | Press release | Distributed by Public on 12/02/2021 03:20

Linklaters advises on the financing of the third phase of the Dogger Bank Offshore Wind Farm, the world’s largest offshore wind farm

Linklaters has advised the borrower on the construction, development and project financing of Dogger Bank C, the third phase of the Dogger Bank Offshore Wind Farm, owned by joint venture partners SSE Renewables and Equinor. The Dogger Bank Offshore Wind Farm will be the largest offshore wind farm in the world once all three phases are complete in March 2026.

The debt financing for Dogger Bank C, which reached financial close today, is being provided by 28 banks and three export credit agencies, namely Bpifrance, EKN, The Swedish Export Credit Agency and Export Finance Norway (Eksfin).

Dogger Bank C has a capacity of 1,200MW and will generate around 6TWh. In total, Dogger Bank will produce enough clean, renewable electricity to supply 5% of the UK's demand, equivalent to powering six million UK homes. The total capex for Dogger Bank C is around £3bn.

The deal follows Linklaters' role advising on the construction, development and £5.5 billion project financing of the previous two Dogger Bank Offshore Wind Farm phases, Dogger Bank A and Dogger Bank B, which reached financial close in November 2020 and which SSE Renewables and Equinor are constructing with joint venture partner Eni. With financial close being reached on the project's third phase, the Dogger Bank Wind Farm has passed the last important milestone ahead of its construction delivery programme.

On 2 November 2021 SSE and Equinor announced the sell down of a combined 20% share in Dogger Bank C to Eni (10% each) for a total consideration of £140m, on which Linklaters also advised.

The Linklaters team was led by partners Richard Coar, John Pickett and Francesca Matthews. Key team members included managing associate Albert Yu and associates Anthony Tridgell, Joowon Lee and Carina Chan.

Francesca Matthews, Energy & Infrastructure Partner, said:

"We are delighted to have supported on the third phase of the Dogger Bank Offshore Wind Farm. This project is an important step on the road to net zero for the UK and the Prime Minister's ambitions to deliver 40GW of offshore wind by 2030. The role of offshore wind in the global energy transition cannot be understated. We look forward to continuing our work on these types of transformational deals in the years ahead around the world."

Richard Coar, Energy & Infrastructure Partner said:

"We are pleased to have been able to support SSE and Equinor once again on this transaction. The close of this financing shows that there remains considerable bank appetite for carefully structured offshore wind projects delivered by experienced developers. The ability of sponsors to continue to access external capital, whilst addressing an increasing number of technical and commercial challenges, will be key for the success of AR4."

The firm has a consistent record supporting sponsors with bringing UK offshore wind farm deals to financial close, including on each of the Seagreen, Beatrice, Dudgeon, Galloper, Greater Gabbard, Moray East, Neart na Gaiothe and Triton Knoll offshore wind farms.

Linklaters is also currently advising on a range of other offshore wind projects, joint ventures and acquisitions in the UK, France, the US, Taiwan, Japan, South Korea, Vietnam and elsewhere in Asia.