PKA ploughs €120m into Gemini
Pension group to help 600MW offshore scheme reach financial close
PKA is to provide a €120m in funding to help bring the 600MW Gemini offshore wind farm to financial close.
The Danish pension group will put up the majority of a €200m subordinated loan with Northland Power providing the remaining €80m in addition to its investment in 55% of the equity.
The agreement is the first financing by a pension fund of an offshore wind farm in The Netherlands ahead of construction.
Typhoon Offshore managing director Michael van der Heijden said: “This is another important milestone for Gemini. The project cash flows allow for a sizeable subordinated loan tranche, and with PKA on board we have now completed raising this layer.
“With the equity and subordinated debt now fully subscribed, all the efforts are now concentrated on raising the senior debt, a process that we officially started on 1 November.”
PKA chief executive Peter Damgaard added: "PKA is very pleased to finance the Gemini offshore wind farm. It will give the members of our five pension funds a good, stable return for many years to come. Also, it fits well with our climate profile and helps creating growth and jobs.”
Gemini , which will feature 150 turbines and be located 85km north of the Netherlands, is due online in 2016.
Canadian company Northland Power entered into an agreement to acquire a majority stake in the project in August, signing a deal with a team of offshore developers and contractors including Typhoon Offshore, Siemens, Van Oord Dredging and Marine Contractors and HVC, a joint venture of 48 Dutch municipalities and six water regulatory authorities.
Image: Siemens has been lined up as preferred hardware supplier at Gemini (Siemens)