UK GIB refinances Masdar stake in London Array wind farm
The UK Green Investment Bank (GIB) is investing £58.6m in the world's largest offshore wind farm, the London Array.
The investment will refinance a significant portion of Masdar's 20% equity stake in the project, which is part of a wider £266m deal between Masdar, GIB, Siemens Bank, IPEX Bank, the Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corporation.
UK GIB chief executive Shaun Kingsbury said: "The UK has taken an early lead in realising the promise of offshore wind. A number of domestic and international parties have moved quickly to develop and construct several of the world's largest offshore wind farms which are now operating efficiently and profitably in our waters.
"The UK Government has ambitions to go further and to see the development of new projects. For that to happen it is important that those best placed to take early stage development and construction risk can get their money out of operating assets and reinvest it," he added.
This is GIB's third investment in offshore wind operating assets and takes its investment in UK offshore wind to £162m. The other investments in offshore wind to date are Walney and Rhyl Flats.
Officially opened on July 4 by the Prime Minister and Secretary of State Edward Davey, the London Array is a 630MW operational wind farm off the coast of Kent, England - it is the largest operating offshore wind project in the world.
The project is owned by DONG (50%), E.ON (30%) and Masdar (20%) and is expected to save 8.5 million tonnes CO2 equivalent over its lifetime.
Business Secretary Vince Cable said: "London Array is an impressive project which has helped the UK earn its position as leading the way in the development of offshore wind. This announcement by the UK Green Investment Bank is an example of how this new institution is helping to attract new capital from around the world and promoting additional private investment into this important sector."