Dong Energy, GIP Partner for Offshore Wind Project

Press release - Global Infrastructure Partners (GIP) announced that its fund, Global Infrastructure Partners II (GIP II), has agreed to acquire a 50 percent stake in the Gode Wind 1 offshore wind farm project (Gode Wind 1) from Danish integrated energy company DONG Energy for a total consideration of $848 million.

Gode Wind 1 is a 330MW offshore wind project in the German North Sea currently being constructed by DONG Energy. The parties have agreed that DONG Energy will provide operation and maintenance services to Gode Wind 1 and a route to market for the power production from Gode Wind 1.

As a part of the transaction, GIP will issue a rated bond to a consortium of leading German insurance companies, with Talanx, one of the largest German insurance groups, being the cornerstone lender. This transaction marks the issuance of the first non-recourse, investment grade, certified green bond dedicated to partially finance an offshore wind farm asset in construction.

The transaction is subject to approval by the competition authorities and is expected to be completed around September 2015.