AMP Capital has entered the wind energy market in Taiwan, having completed a US$145 million ($208.8 million) mezzanine debt investment with US asset manager Stonepeak Infrastructure Partners.
The investment will support the construction of a new 376-megawatt offshore wind farm called Formosa II.
Formosa II is reported to be a priority project for the region, with AMP Capital stating it will be one of the Taiwans’s largest offshore wind farms when construction is completed. Building is expected to be complete next year.
Energy produced from the asset is contracted to state-owned Taiwan Power Company for 20 years under a fixed price power purchase agreement.
It has followed Swancor’s development of Taiwan’s first operational offshore wind asset, Formosa I, which began operations in 2019.
AMP Capital head of infrastructure debt in Asia Simon La Greca said the transaction is AMP’s first infrastructure debt investment in Taiwan.
“Infrastructure investment in Asia is growing at pace to meet the demands of rising populations and expanding economies,” Mr La Greca said.
“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 meet growing demands for infrastructure in the region.”
The investment has followed AMP Capital’s US$6.2 billion ($9.6 billion) fundraise for its fourth infrastructure debt strategy.
Since 2001, the infrastructure debt team is reported to have invested more than US$7.4 billion in 76 assets globally.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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