MUFG has successfully closed the financing of Eoliennes en mer des Îles d'Yeu et de Noirmoutier and Eoliennes en mer Dieppe Le Tréport, two 500 megawatt offshore windfarm (OFW) projects amounting to total senior debt financing of approximately EUR 5 billion, with around half being provided by the Japan Bank for International Cooperation (JBIC). The projects were led by a consortium of Ocean Winds (a 50/50 Engie and EDP joint venture), Sumitomo Corporation and Banque des Territoires.
As part of the deal, MUFG acted as Equity Bridge Loan (EBL) Arranger and Senior Debt Mandated Lead Arranger and Hedge Provider, as well as sole JBIC Fronting Facility Lender, JBIC Facility Agent and JBIC Coordinator. These projects illustrate MUFG's commitment to assisting clients in taking proactive steps towards achieving their net-zero goals.
The two offshore windfarms will supply electricity to over 1.6 million inhabitants of France each year and will contribute to the French Government Multiannual Energy Plan towards carbon neutrality. Due to be operational in 2025 and 2026 respectively, the Eoliennes en mer Îles d'Yeu et de Noimoutier OFW and the Eoliennes en mer Dieppe Le Tréport OFW will be the fifth and sixth offshore windfarms to be commissioned in France.
Fumiyuki Tsukada, Deputy General Manager of MUFG Bank Paris Branch, commented:
"We are pleased to have supported the Sponsors in these two landmark transactions. At MUFG, we are fully engaged in supporting Japanese and multinational companies in financing their infrastructure expansion plans.
"Utilising our extensive experience in financing offshore wind energy MUFG is helping our clients make tangible progress in achieving their sustainability goals [1].
"Furthermore, acting in leading roles with the JBIC demonstrates our ability to implement tailor-made solutions for the success of our clients."
Paolo Cairo, President of the project companies, Eoliennes en Mer Dieppe Le Tréport and Eoliennes en Mer and Eoliennes en Mer des îles d'Yeu et de Noirmoutier, commented:
"I would like to thank the teams and our partners for their dedication in reaching this emblematic milestone! We will continue the collective adventure of building the EMDT windfarm with the same enthusiasm."
In recent years, MUFG has demonstrated a strong leadership in the offshore wind industry having provided financial support to over 40 projects in Europe, supporting the transition to a net zero economy.
MUFG aims to provide a cumulative ¥35 trillion in sustainable financing by FY2030 as part of a commitment to achieve net zero emissions in its finance portfolio by 2050 and in its own operations by 2030. The financings of Eoliennes en mer Dieppe Le Tréport and Eoiennes en mer des Îles d'Yeu et de Norimoutier OFW are important steps in realising this ambition."
Guillaume Leprieur, Head of Structured Finance Office for EMEA, France, added:
“MUFG is fully committed to supporting our clients in their energy transition journey to a sustainable economy.
"These transactions reinforce our leading role in the sector and evidence our efforts to deliver on our sustainable commitment."