Aquila wraps up bond financing deals for 400-MW wind project in Norway

Hamburg-based investor Aquila Capital has secured EUR 315 million (USD 370.5m) in two bond financing deals to support the 400-MW Oyfjellet onshore wind project in Norway.

Both placements were oversubscribed, Aquila said on Thursday. More specifically, the German firm sold EUR 235 million worth of 24-year fully amortising bonds in a US private placement (USPP), as well as junior Nordic green bonds totalling EUR 80 million. The green bond matures in five years and has a fixed rate of 2.75%, while the USPP securities bear a coupon of 2.12%.

Funds raised in the two transactions are earmarked for the remaining construction costs and other expenses related to the Oyfjellet scheme, and for capital returns to project shareholders.

Oyfjellet will be located near Mosjoen in the Vefsn municipality of northern Norway. It will be powered by 72 N149/5.X turbines by Germany’s Nordex, which are scheduled to go online by the end of this year.

The bulk of the wind farm’s output will be sold to Alcoa Norway ANS, which in 2018 committed to buying electricity under a 15-year off-take deal to power its local aluminum production.

Aquila took control of the company that holds all the rights to the Oyfjellet project at the end of 2019. The scheme was developed by Swedish wind project developer Eolus Vind AB, which is now in charge of building the wind farm.

(EUR 1.0 = USD 1.176)

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