Export Development Canada (EDC) has announced it provided EUR 125 million in financing to Toronto-based Northland Power for the 600 MW Gemini offshore wind project, planned in the Dutch North Sea.
EDC says this represents the largest loan the company has ever provided to the wind power sector, and the financing will be used by Northland to purchase a 60% ownership stake in offshore project. According to EDC, Gemini will be the second largest wind farm in the world once completed in 2017.
‘Canadian companies like Northland have the potential to become world leaders in the cleantech space, and these are the type of companies that EDC wants to invest in to help them through every step of the way,’ comments Al Hamdani, EDC's vice president of structured and project finance.
In addition to EDC, 10 international commercial banks were involved in securing the total EUR 2.8 billion term loan, including the Bank of Montreal and CIBC. Gemini is owned by a consortium of Northland Power (60%), Siemens Financial Services (20%), Van Oord Dredging and Marine Contractors BV (10%) and N.V. HVC (10%).
‘We are very pleased with the extraordinary effort put forth by the project's financiers, as financial close was achieved in record time for a project of this nature,’ says Northland Power CEO John Brace. ‘As the largest project financing in the offshore wind sector, this transaction validates the high quality of the project and illustrates Northland's evolution from a leading Canadian power producer to an international company taking on world-class projects.’