Northland Power Inc has announced the extension of the maturity date for its debt facility linked to its equity participation in the Hai Long offshore wind project in Taiwan. The CAD-500-million (USD 366.8m/EUR 335.3m) short-term corporate credit facility, originally set to expire on November 27, 2023, has been prolonged to December 31, 2023.
The extension is contingent upon Northland Power's anticipated proceeds from the 29.4% stake sale in the CAD-9-billion Hai Long project to Malaysia's Gentari. The agreement, inked in December of the preceding year, is slated to conclude in the fourth quarter.
Northland Power intends to utilize the credit facility to cover its equity contribution to the offshore wind venture, with repayment scheduled upon the receipt of funds from the Gentari stake sale. Should the transaction face delays, Northland retains the option to seek further extension of the credit facility or explore refinancing alternatives.
Hai Long, a collaboration between Northland Power (60% stake) and Japanese trader Mitsui & Co Ltd (TYO:8031), achieved financial closing in September. The offshore wind park, positioned 45km-70km off the Changhua coast in the Taiwan Strait, is expected to commence operations in 2026/2027. Comprising three separate parks with a total of 73 turbines, the complex aims to generate sufficient power to cater to the energy needs of over one million homes in Taiwan.
