EKF Denmark’s Export Credit Agency provides a guarantee for the largest wind financing deal in the world

EKF Denmark's Export Credit Agency's guarantee worth GBP 800 mio. for the offshore windpark Hornsea 1 is the largest financing in EKF's history.

When Hornsea I, the largest offshore wind park in the world, in 2020 will supply electricity to a million British households, EKF Denmark’s Export Credit Agency has provided guarantees worth GBP 800 mio.

Not only is it the largest financing in EKF’s history, it is also the largest wind financing that any public export credit agency has ever provided. 

”Wind technology is a Danish core competency, and it is important that we keep developing it and that we retain the expertise in Denmark. This is not just about securing orders for the large players such as Siemens Gamesa Renewable Energy. It is also about the vast number of sub-suppliers who help to create thousands of jobs in the wind industry in Denmark. This is why it is so important that we participate”, says Christian Ølgaard, Deputy CEO of EKF.

Wind power in the North Sea means millions of pound in loans, complex financing deals, a host of financial players and long debt tenors of up to 18 years. It takes experience with risk coverage and structuring of complex financing deals, and EKF has been in this game since 2003.

”Offshore wind parks have become so large and the financing so complex that it requires participation from several financial players. EKF participates in the financing by covering a part of the banks’ risk”, continues Christian Ølgaard.

With the latest deal on Hornsea I, EKF has provided financing to wind projects all over the world for more than EUR 12 billion (DKK 90 billion) since 2003. In recent years, this applies not least to the largest offshore wind parks in the UK, Germany, the Netherlands and Belgium, but also in Taiwan and to a number of onshore wind parks in emerging markets such as Turkey, Kenya, Senegal, Bosnia & Herzegovina and Argentina.

​Last year wind made up 60 per cent of EKF’s total portfolio, and more than ever, the Danish ECA is ready to venture into the largest deals and most remote markets together with our customers.

So far, offshore wind has primarily been a North European phenomenon underpinned by government-driven price support mechanisms to support the development of an incipient industry. However, the market has evolved and is now switching to competitive wind auctions whereby the bidders with the lowest prices tend to win – putting pressure on all links in the supply chain – including financing. This, however, does not rattle the Danish export credit agency.

”Wind turbines have been so thoroughly tested that today the technical risk has been reduced significantly. At the same time, we see a heavy expansion of onshore wind in emerging markets where the risk appetite of commercial banks and institutional investors is often low. For this reason we expect to double the level of new issuance this year, and we anticipate a continued high demand for EKF’s financing solutions”, says mr. Ølgaard. 

For further information please contact Ulla Jepsen, Chief Communications Consultant at +45 35 46 26 78 or ulj@ekf.dk