A consortium led by AXA IM Alts and Credit Agricole Assurances has purchased a 50% interest in Orsted’s 1400MW Hornsea 2 offshore wind farm. The deal is worth £3 billion. AXA IM Alts and Crédit Agricole Assurances will each hold 25% of the project on behalf of its clients.
Their overall investment in Hornsea 2 will be made up of a mix of stock and a senior multi-tranche core financing package offered by 30 banks, including a covered tranche guaranteed by EKF, Denmark’s export credit agency. Orsted originated and structured the finance deal.
Hornsea 2 is now under development and will be completed in 2022, making it the world’s largest offshore wind farm.
Once the wind farm is fully operational and all necessary regulatory permits have been secured, the transaction is expected to close in the second half of 2022.
“We’re delighted to partner with AXA IM Alts and Crédit Agricole Assurances, two world-leading financial institutions, which are committed to accelerate the transition to a carbon-neutral economy in line with the Paris Agreement – thereby supporting the urgently needed shift from fossil-based to renewable energy sources.” said Orsted deputy chief executive Martin Neubert.
“Our investment strategy is all about decarbonisation, electrification, and digitalisation. These are central to the energy transition. Hornsea 2 allows us to play an important role in decarbonising and electrifying the United Kingdom. said Mark Gilligan, Head of Infrastructure Equity at AXA IM Alts.”
“This landmark transaction aligns with our aim of acquiring, for our clients, utility-scale low-carbon essential businesses and being a long-term partner of choice for outstanding operators like Ørsted.”
