UK Export finance backs Seaway7’s £370 million expansion for offshore wind operations

16/11/2023

IN A significant boost to the North Sea offshore wind industry, UK Export Finance (UKEF) has granted a loan guarantee to Seaway7, facilitating access to a substantial £370 million funding package. The move underscores the government’s commitment to supporting sustainable energy initiatives and fostering economic growth.

Issued under UKEF’s Export Development Guarantee (EDG) facility, the funding aims to empower Seaway7, a fixed offshore wind specialist, to enhance its UK operations and develop its current fleet. This strategic support is anticipated to lead to the creation of over 100 new jobs in Aberdeen’s offshore wind industry by the end of the decade.

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The government-backed deal, coordinated by HSBC with Citibank, Credit Agricole Corporate and Investment Bank, DNB, HSBC, and ING as Mandated Lead Arrangers, signifies a pivotal step in the expansion of Seaway7’s presence in the UK. The UKEF guarantee covers 80% of the total loan, enabling the offshore wind company to secure financing crucial for the execution of Engineering, Procurement Construction, and Installation (EPCI) contracts for fixed offshore wind projects.

Seaway7, with a successful track record in delivering offshore wind projects globally, including in Taiwan, the USA, and continental Europe, is poised to play a key role in meeting the rising demand for renewable energy. The company’s further development in the UK is not only expected to boost its competitive edge but also contribute significantly to regional growth.

Lord Offord, Minister for Exports, expressed optimism about the impact of the development on Scotland’s renewable energy sector. He stated, “This is a great development for Scotland’s renewable energy industry, set to create over 100 jobs in Aberdeen and consolidate its place as a global leader in offshore wind expertise.”

Philip Lewis, Global Co-Head of Export Finance for HSBC, highlighted the importance of the transaction in supporting Seaway7’s role in the offshore wind industry. “We are thrilled to have supported Seaway7 by coordinating this important transaction, which will further enable the company to provide invaluable support to the offshore wind industry and help meet the rising demand for renewable energy.”

Seaway7’s Aberdeen base, responsible for overseeing all aspects of vessel construction, use, and maintenance, stands as a testament to the company’s commitment to its operations in the region.

In the broader context, this initiative reflects the government’s commitment to sustainable trade and investment through UKEF, aiming to secure the long-term prosperity of the United Kingdom.

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