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.

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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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