We hâve had a very trusting working relationship with the wpd Group in the onshore sector for more
than 15 years. There were no justifiable reasons for us why wpd would notbe abietoshoulderthe Butendiek project. wpd is also from Bremen which is significant for us in terms of local attachment. We
are pleased, therefore, to be taking our first steps in the financing of an offshore wind farm at the side
of wpd.
Does that alone explain the years of reticence on the part of Bremer Landesbank when it came to the financing of wind farms at sea?
Your bank has been one of the major players for years in the financing of wind turbines on land.
That's right. Initially there was much less expérience available in offshore technology. The number of
projects in Europe, but above ail in Germany, was limited. The decidedly high investment volumes for
offshore wind power represent a further factor. Initially there were also no reguests for project finance.
That is why we deliberately kept a iow profile in terms of wind power at sea, but instead we watched the
developments with interest.
A consortium of twelve banks took over the financing of Butendiek. Does it need such a large group for Bremer Landesbank for the
first time to join the financing of an offshore wind farm costing in the billions? After ail, your ticket has become so modest.
Our ticket for Butendiek is around 25 million euros which is an appropriate entry figure fora new finance
segment. With regard to the size of our bank, we are aware that we can only play a minor rôle when it
cornes to financing these large projects. We wanted to provide finance for our first offshore project at a
level to which we were accustomed from the onshore sector. Admittedly, on land we sometimes finance
wind farms up to a level of 50 million euros. But such a sum would hâve been too much for us for our
first venture Info the offshore segment. The fact that we are "only" one of twelve banks financing Butendiek is absolutely fine for us, therefore. We feel at home in this company especially as with U ni Crédit
and KfW-IPEX we hâve two banks acting as the lead arranger which hâve already gained expérience of
structuring loans for offshore wind projects. Our appointment as a lead arranger is certainly due to the
successful business relationship we hâve enjoyed with the wpd Group over many years. Mutual trust
has a stabilising effect.
What is the rôle of a so-called lead arranger in an offshore wind power project?
The job of the lead arranger is to organise the complété finance package, i.e. to find enough consortium
partners to ensure finance for the project. In the process, the lead arrangers select their own consultants whether fortechnical or legal gu estions. This extern al expertise is important as the offshore wind
industry is still guite a young sector. With the support of these advisors, the lead arrangers develop
what they consider to be a viable finance concept. There is a lot of coordination work to be done as a
lead arranger including recruiting the consortium partners and Consulting with the client on various
issues in the project.
155
than 15 years. There were no justifiable reasons for us why wpd would notbe abietoshoulderthe Butendiek project. wpd is also from Bremen which is significant for us in terms of local attachment. We
are pleased, therefore, to be taking our first steps in the financing of an offshore wind farm at the side
of wpd.
Does that alone explain the years of reticence on the part of Bremer Landesbank when it came to the financing of wind farms at sea?
Your bank has been one of the major players for years in the financing of wind turbines on land.
That's right. Initially there was much less expérience available in offshore technology. The number of
projects in Europe, but above ail in Germany, was limited. The decidedly high investment volumes for
offshore wind power represent a further factor. Initially there were also no reguests for project finance.
That is why we deliberately kept a iow profile in terms of wind power at sea, but instead we watched the
developments with interest.
A consortium of twelve banks took over the financing of Butendiek. Does it need such a large group for Bremer Landesbank for the
first time to join the financing of an offshore wind farm costing in the billions? After ail, your ticket has become so modest.
Our ticket for Butendiek is around 25 million euros which is an appropriate entry figure fora new finance
segment. With regard to the size of our bank, we are aware that we can only play a minor rôle when it
cornes to financing these large projects. We wanted to provide finance for our first offshore project at a
level to which we were accustomed from the onshore sector. Admittedly, on land we sometimes finance
wind farms up to a level of 50 million euros. But such a sum would hâve been too much for us for our
first venture Info the offshore segment. The fact that we are "only" one of twelve banks financing Butendiek is absolutely fine for us, therefore. We feel at home in this company especially as with U ni Crédit
and KfW-IPEX we hâve two banks acting as the lead arranger which hâve already gained expérience of
structuring loans for offshore wind projects. Our appointment as a lead arranger is certainly due to the
successful business relationship we hâve enjoyed with the wpd Group over many years. Mutual trust
has a stabilising effect.
What is the rôle of a so-called lead arranger in an offshore wind power project?
The job of the lead arranger is to organise the complété finance package, i.e. to find enough consortium
partners to ensure finance for the project. In the process, the lead arrangers select their own consultants whether fortechnical or legal gu estions. This extern al expertise is important as the offshore wind
industry is still guite a young sector. With the support of these advisors, the lead arrangers develop
what they consider to be a viable finance concept. There is a lot of coordination work to be done as a
lead arranger including recruiting the consortium partners and Consulting with the client on various
issues in the project.
155