AMP Capital is today announcing they have completed a US$145 million mezzanine debt investment with Stonepeak Infrastructure Partners to support the acquisition of one of Taiwan’s leading offshore wind farm developers, Swancor Renewable Energy Co., Ltd. The investment, which marks AMP Capital’s first in Taiwan, will support the construction of a new 376-megawatt offshore wind farm called Formosa II.
Formosa II is considered a priority project for the region and will be one of Taiwan’s largest offshore wind farms when construction is completed, which is currently expected to be in 2021. Energy produced from the asset is contracted to the state-owned Taiwan Power Company for 20 years under a fixed-price power purchase agreement.
Swancor successfully developed the country’s first operational offshore wind asset, Formosa I, which began operations in 2019. The increased investment in wind power follows strong renewable energy targets set by the Taiwanese government.
AMP Capital’s Head of Infrastructure Debt in Asia, Simon La Greca said: “The transaction represents our first infrastructure debt investment in Taiwan– it’s a key milestone for our business and delivers a unique, quality asset for our clients around the world.
“Infrastructure investment in Asia is growing at pace to meet the demands of rising populations and expanding economies. Renewable energy in Asia is a sector where we see a long-term opportunity – alongside water, transport and telecommunications infrastructure – in supporting this growth.
“Historically, infrastructure projects were funded by local governments, however private sector funding is becoming increasingly important to help meet growing demands for infrastructure in the region,” he said.
The investment follows AMP Capital’s record US$6.2 billion (A$9.6 billion) fundraise for its fourth infrastructure debt strategy, announced in October 2019. More than US$2 billion of funds raised have already been invested in assets around the world, with Swancor Renewable Energy one of the more recent additions to the portfolio.
Since 2001, AMP Capital’s Infrastructure debt team has invested more than US$7.4 billion in 76 assets globally.