Looking through the Project Finance Market for European Offshore Wind to form a basis for Turkish Offshore Wind Project Finance Structures (2)

Ozlem Kildir
Instructor of Energy Financing at the Sabancı University Graduate Program
for Energy Management & Technologies
Owner of Profinstance© Project Finance Advisory & Training
Financial Consultant for WindThink Consultancy

(Click here to read the first part of the article)

Project Finance Loan Terms & Conditions in the European Offshore Market and the evolution of
Project Financing Structures
Lenders of Project Finance Loans of Offshore Wind Projects
Commercial banks, state banks, multilaterals, export credit agencies are well-placed in the global and mainly
European offshore market. In the initial examples development bank and ECA structures were common,
where commercial banks increased their risk appetite, for offshore wind financing. Over 30 international
commercial banks with offshore financing experience, are active in the market. In general, when the project
investment cost is over 50-150 million EUR a club loan or consortium lender group is formed, with an
underwritten amount of 30-50 million EUR, in the European structures.
Looking at how onshore wind financing structures have evolved in the Turkish market it is acceptable to
assume a development bank and ECA involvement at first. Also, the current market conditions would favor a
lower interest rate capability in the financings.
Initial funds needed for wind measurements, geological surveys, designs and technical due diligences
would be based on equity investments backed by corporate lines as the first Geothermal Project Financings
have been done in the Turkish market.

Please click here to read more: https://view.publitas.com/p222-1755/ruzgar-enerjisi-dergisi-kasim-2018-sayi-24/page/42-43