Legal & General completes first UK offshore wind investment
Walney Extension, which is currently under construction, will be the world’s largest offshore wind farm with a capacity of 660 megawatt (MW), providing enough power for over 590,000 homes.
LGIM Real Assets was an anchor investor, structuring and providing both commercial debt and Export Credit Agency (ECA) wrapped debt on this transaction.
The acquisition represents Legal & General’s first debt investment into UK offshore wind sector and its second largest infrastructure debt investment, after the £400m London Gateway Port refinancing in 2016.
The deal was financed by LGIM Real Assets on behalf of their clients, including Legal & General Retirement (LGR). LGR was the principal investor for LGIM Real Assets on this transaction, providing £250M of the circa £300M of long-term acquisition debt.
The Walney Extension offshore wind farm will be located in the Irish Sea, around 19 km west of the Walney Island coast in Cumbria. Approximately £1 Million per month was contributed to the local economy during the construction of Walney I and II.
It is also estimated that for the Walney Extension Project, Ørsted could support up to 185 full-time jobs annually throughout the estimated 25 year operational lifespan. ■