Ørsted has entered into an agreement on the sale a 50 per cent stake in the German offshore wind farm Borkum Riffgrund 3 to Glennmont Partners. Glennmont is wholly owned by the asset manager Nuveen. Its institutional investors include the Teachers Insurance and Annuity Association (TIAA), Nuveen's parent company.
The wind farm Borkum Riffgrund 3 will be built in the German North Sea and consists of 83 turbines with a total export capacity of 900MW. It is expected to be commissioned in 2025. Ørsted will construct the wind farm, perform operations and maintenance services and market the electricity as well as green certificates generated by Borkum Riffgrund 3.
The project is planned with next-generation wind turbine technology and is innovative also from a commercial perspective. Ørsted has so far signed long-term fixed price corporate power purchase agreements (CPPAs) for a total of 450MW of the electricity produced by Borkum Riffgrund 3 and intends to enter into further CPPAs. The CPPAs will limit Ørsted's exposure to electricity price and merchant risk while the project generally does not hold an award for a subsidy in form of a market premium on the electricity produced.
Glennmont will partially finance the acquisition and ongoing funding of its 50% share in the project through long-term senior debt facilities from eight banks. Ørsted structured the debt financing package and led the process, Glennmont co-arranged it.
The transaction is, among other conditions, subject to Ørsted's final investment decision and regulatory clearances.
Hengeler Mueller advised Ørsted comprehensively on the transaction and its financing. The Hengeler Mueller team was overall led by partner Sebastian Schneider (M&A/Energy, Frankfurt) and on debt financing aspects by partner Nikolaus Vieten (Financing, Frankfurt). It further included partners Nicolas Böhm (M&A/Corporate, Berlin), Markus Ernst (Tax, Munich), Fabian Quast (Regulatory, Berlin), Thorsten Mäger (Antitrust, Düsseldorf) and Jan Bonhage (Foreign Investment Control, Berlin), counsel Andreas Breier (M&A/Energy, Berlin), Jörg Meinzenbach (Antitrust, Düsseldorf) and Matthias Berberich (IP/IT, Berlin) as well as associates Tobias Schilling (Berlin), Georg Tauser (Frankfurt), Philipp Pauschinger (Berlin) (all M&A), Tom Shingler, Tobias Braun (both Financing), Sebastian Adam (Tax) (all Frankfurt), Carolin Raspé, Erasmus Hoffmann, Thomas Ruthemeyer and Anna Eickmeier (all Regulatory, Berlin).
Inhouse, Ørsted is represented legally in the transaction by Manuel Rolfes (Lead Legal Counsel) and Robert Allan (Senior Legal Counsel).