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Construction of 9-turbine wind farm underway
The construction of a new 30MW wind farm in Victoria will soon kick off, with multimillion-dollar financing for the project secured.
Melissa Coade
Firms: Herbert Smith Freehills (National Australia Bank Limited and EKF Danmarks Eksportkredit)
Value: $84.5 million
Area: Finance
Key players: The HSF team advising the lenders in the deal was led by partner Gerard Pike (pictured), with assistance from partner Kristen Percy.
Deal significance: The nine-turbine Kiata Wind Farm (Kiata) project, developed by Windlab, should be finalised by the end of 2017. The wind farm, located 50 kilometres west of Horsham in Victoria, is expected to provide enough annual clean energy for more than 20,000 households, with a 30MW output.
According to a statement released by HSF, John Laing has invested in Kiata as the major equity partner, with the remainder to be owned by Windlab and the project’s neighbouring property owners.
The Victorian government is also backing Kiata by entering into a supply agreement for large-scale generation certificates (LGCs) to be provided to the state government.
NAB and EKF Danmarks Eksportkredit have provided $84.5 million financing for the wind farm, which will allow construction to get underway.
HSF partner Gerard Pike, who advised the lenders on the deal, said the transaction marked a milestone for the state’s wind industry.
“The EKF funding, as well as the Victorian government LGC offtake for this Kiata project, shows there are options for project financing renewables projects to optimise returns where sponsors are willing to look beyond the usual offtake and commercial bank medium-term financing options,” Mr Pike said.
“It is great to help NAB and EKF to achieve construction and long-term project financing for this project […] We think Windlab and John Laing have achieved a great result with this funding,” he said.
