Taiwan / Loan Insurance for Hai Long Offshore Wind Power Project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) decided to provide insurance for loans extended by commercial financial institutions to Hai Long 2 Offshore Wind Power Co., Ltd. and Hai Long 3 Offshore Wind Power Co., Ltd. in Taiwan invested by Mitsui & Co., Ltd. together with Northland Power Inc., a global independent energy company in Canada. The Project involves the construction, operation and maintenance of a new 1,022MW (based on installed capacity) offshore wind farm located off the southwest coast of Changhua County of central Taiwan.

In this Project, NEXI loan insurance will cover a financing portion of approximately NTD 27 billion by 9 commercial banks: MUFG Bank, Ltd., the Hongkong and Shanghai Banking Corporation Limited, Mizuho Bank, Ltd., CTBC Bank Co., Ltd., Australia and New Zealand Banking Group Limited, Crédit Agricole Corporate and Investment Bank, Sumitomo Mitsui Banking Corporation, Standard Chartered Bank, and DBS Bank Ltd. Part of the project finance will also be supported by 7 export credit agencies and development financial institutions from 6 countries: Japan Bank for International Cooperation, Export Development Canada, Export Finance Norway, Credendo – Export Credit Agency, Export Finance Australia, etc.

In the “Taiwan’s Pathway to Net-Zero Emissions in 2050”, which the Government of Taiwan officially published in March 2022 and pledged to reduce its carbon emissions and reach “net zero” by 2050, the Government of Taiwan has set a goal of 40-55 GW offshore wind power capacity by 2050. Supporting the project is in line with the Government of Taiwan energy policy. Due to its contribution to environmental protection and climate change prevention, this project is provided with Loan Insurance for Green Innovation¹ and increased commercial risk coverage of 97.5% is applied. The project also complies with the LEAD Initiative² (in the Environment and Energy field) which NEXI actively promotes.

The financial support from NEXI is expected to expand the business opportunities of Japanese companies in Taiwan, in turn maintain and increase the global competitiveness of Japanese businesses in renewable energy development. This project is also in line with the Japanese government’s Infrastructure System Overseas Promotion Strategy 2025, which identifies the promotion of accelerating transitions toward a decarbonized society as one of its objectives.

NEXI will continue to actively support Japanese companies to expand their global business, as a Japanese financial institution to implement national policies.

Contact
Power Group, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7340