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England

England

Lincs financing package relaunched

UK: After failing to secure £1 billion in debt from the banks, the UK's Lincs offshore consortium -- comprising Centrica, Siemens and Dong Energy -- is instead lending some of the required sum to themselves for the 270MW North Sea project off England's east coast.

At the end of last month Bloomberg reported that Centrica’s commitment would be £333.3 million, Dong Energy’s £166.7 million and Siemens’ £75 million via Siemens Financial Services, although the split between debt and equity has yet to be revealed.

In addition, commercial banks are being asked for £550 million in long-term debt, plus a £250-million short-term facility to cover the construction of the required offshore transmission link for the Round 2 project.

Lincs has long been regarded as a landmark financing deal for UK offshore wind as it would be the first to be funded from the construction phase with bank debt, although several launches of a financial package for the project have so far been deemed "unbankable" by lenders.

"This kind of structure, with sponsors lending large amounts of capital to a scheme, is common in the oil and gas industry, but hasn’t been used in wind before," commented Jerome Guillet, managing director at Green Giraffe Energy bankers.

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