Equity side of Meg1 finance to be clinched by end 2012

8 banks lined up to provide debt funding

Germany developer, Windreich, expects to sign up investors for the €800m equity element of project finance for its 400MW Meg1 offshore project before the end of the year.

"We believe we are on course as the only company in the German offshore wind sector that is proceeding with all its projects to plan," Windreich owner, Willi Balz, told Windpower Offshore. The company is currently building its Global Tech1 project and recently announced the sale of Deutsche Bucht.

"With the equity signed up for Meg1 by end-year, we will then be in a position to complete financing on the debt side, that is 60% of total investment, very quickly," said Balz. "We have been working on this for the last two years and expect to sign up 8 banks, the main supporting pillars being Germany's support bank KfW and the European Investment Bank."

Meg1 is part of an offshore cluster that also includes Borkum West2 and Borkum Riffgrund1. The three projects will use the DolWin1 cable connection to shore, which will be commissioned next summer.

Windreich has invested around €113m in MEG 1, thus far, and plans to begin turbine installation in mid-2014, confirms Balz.

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