Danish renewable energy developer Orsted has signed a NT$25 billion ( US$783 million ) sustainability-linked revolving loan facility for its offshore wind farms in Taiwan, with a consortium of financial institutions, including all of Taiwan's state-owned banks.

The loan deal was facilitated by Bank of Taiwan, CTBC Bank, and BNP Paribas Taipei Branch, which will jointly act as mandated lead arrangers and bookrunners. The financing, guaranteed by Orsted A/S, attracted oversubscription from both domestic and foreign banks.

The loan involves sustainable initiatives related to Orsted’s business operations as key performance indicators to ensure that offshore wind projects are constructed and operated in harmony with Taiwan’s biodiversity. 

“The financing signifies more than just numbers. It reflects our commitment to sustainability. We're delighted to see strong support shown from the banking community in Taiwan with the participation in this transaction of 15 banks, including state-owned institutions,” says Kasper Kiim Jensen, vice-president of treasury and capital planning at Orsted.

“This represents our dedication not only to advance offshore wind development in Taiwan, but also to ensure it is undertaken in a sustainable manner.”

The sustainability-linked revolving loan facility was finalized with participation from the following state-owned banks: Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taiwan Business Bank, Taiwan Cooperative Bank and The Export-Import Bank of the Republic of China.

Also participating in the financing were CTBC Bank, BNP Paribas Taipei Branch, DBS Bank ( Taiwan ), E.Sun Commercial Bank, JPMorgan Chase Bank Taipei Branch, and Taishin International Bank.