EKF and Danske Bank sign guarantee facility worth EUR 500 million with Siemens Gamesa
As a result of their strong cooperation with Siemens Gamesa Renewable Energy A/S, EKF and Danske Bank have offered Siemens Gamesa a guarantee facility worth EUR 500 million. This large amount of capital will be used to guarantee the delivery of Siemens Gamesa´s steadily increasing order portfolio.
Orders are pouring in at Siemens Gamesa, one of the world’s leading suppliers of onshore and offshore turbines and service solutions, and orders for turbines, especially for offshore wind farms, are getting bigger and bigger.
Bonds are crucial to orders
The guarantee facility from EKF and Danske Bank will reinforce Siemens Gamesa’s ability to keep pace with growing future orders and allow Siemens Gamesa to provide guarantees.
EKF’s participation in the guarantee facility further cements the 20-year relationship with Siemens Gamesa and reflects the turbine manufacturer’s continued substantial footprint in Denmark.
“Doing our utmost to help ensure Danish turbines are selected for projects worldwide is what we are all about at EKF. I am pleased with the result of the cooperation with Siemens Gamesa and Danske Bank, both of whom are very important partners to EKF. With this new facility, Siemens Gamesa will have a more streamlined bonding process for many of its future projects and it can focus even more on delivering excellent customer value. At EKF we are delighted to play our part as Danish wind turbine manufacturers lead the world in transitioning to a sustainable energy future,” says Peter Boeskov, Chief Commercial Officer, Global Wind & Structured Finance, EKF.
A 50-50 split between Danske Bank and EKF
The guarantee facility, also called a bonding facility, worth EUR 500 million will be provided by EKF and Danske Bank on a 50-50 basis. Danske Bank will front the full guarantee facility whereas EKF issues a guarantee to Danske Bank covering 50 percent of the exposure.
The new bonding facility replaces an existing and less extensive facility granted by Danske Bank. It ensures a significant expansion of Siemens Gamesa’s overall guarantee capacity.
Danske Bank: Dedication across organizations to make this happen
“For the team in Danske Bank, it has been a privilege to work on this project for Siemens Gamesa, getting EKF on board – and providing the guarantee framework needed to enable even more wind generated energy in the future,” says Jesper Brøchner Pettersson, Danske Bank, who has been heading the financing team from the start.
He continues: “Large scale guarantees are a prerequisite for the realization of giant offshore windfarm projects. We are proud to support a good cause, which contributes to the UN sustainable development goals, and we highly value the good working relations along the way. Across organizations, everyone has been very dedicated to make this happen.”
First performance guarantee under the facility is already issued
“We are very pleased”, states Siemens Gamesa’s CFO Beatriz Puente Fererras, “that Danske Bank and EKF have arranged this green guarantee facility. This will benefit our customers’ projects as well as the global energy transition. Both financial institutions have been working with a very customer-minded focus, and we are very happy to report the successful release of a first guarantee under the facility for a project in the Nordics.”