“This is the first syndication loan in the field of renewable energy sector, co-arranged with our strategic partner HSBC. Bank of Communications will make further efforts to execute green-credit policy and contribute more to energy conservation and emissions reduction by duplicating the same model”
“This continues our expansion into wind power and demonstrates our desire to participate in the renewable energy industry in China,” said Jim Hughes, Chief Executive Officer of AEI.
AEI also closed a long-term project finance loan for 397 million renminbi (approximately US $58 million), which was provided by HSBC and Bank of Communications. The bank financing is the first non-recourse project financing successfully closed for a wind farm project in China under the framework of the Chinese Renewable Energy Law and is also the first renminbi-denominated long-term project finance loan for HSBC.
“AEI is excited to be developing its first wind farm in China and is pleased to be working with a strong group of partners and stakeholders that includes NBT, HSBC, Bank of Communications, Suzlon, Baicheng City, and Taobei District,” added Colin Tam, CEO of AEI Asia Ltd.
“We are excited to be in partnership with a company of AEI’s caliber. This joint venture enables us to accelerate our development for more wind power in China,” said Joar Viken, CEO of NBT AS.
The 49.5MW wind farm will use 33 of Suzlon’s S-82 1.5MW wind turbines, manufactured in Tianjin, China. Construction of the wind farm has started and is expected to be completed by the end of 2010.
“We are delighted to work closely with a reputable company as AEI and look forward to expanding our partnership in China and beyond,” said Tulsi R. Tanti, Chairman and Managing Director of Suzlon Energy.
Richard Yorke, President and Chief Executive Officer at HSBC China, added: “This is the first wind farm project financing in China, jointly arranged by HSBC and our strategic partner Bank of Communications, demonstrating the combined strengths and advantages of our partnership. We are pleased to have this opportunity to support AEI and also to contribute to China’s renewable energy sector – a sector that offers great potential and is a key focus for HSBC’s commitment to sustainability.”
“This is the first syndication loan in the field of renewable energy sector, co-arranged with our strategic partner HSBC. Bank of Communications will make further efforts to execute green-credit policy and contribute more to energy conservation and emissions reduction by duplicating the same model,” said Jin Qi, Senior Manager at Bank of Communications Corporate Banking Department.
AEI owns and operates essential energy infrastructure businesses in emerging markets diversified across four core business segments – Power Distribution, Power Generation, Natural Gas Transportation and Services, and Natural Gas Distribution – within five regions – Andean, Southern Cone, Central America/Caribbean, China, and Europe/Middle East/North Africa. AEI and its 11,550 employees serve more than 7.4 million customers worldwide, with approximately 26,500 miles of gas and liquids pipelines, 121,000 miles of power distribution and transmission lines, and 2,277 MW of installed power generation capacity. More information can be found at www.aeienergy.com.
NBT AS is a Norwegian renewable energy development company with operations in Norway, China, Cyprus, Hong Kong and Pakistan. NBT is currently developing 200MW of wind farms in China with a pipeline of another 1000MW, a 60MW biomass power plant in Jilin Province, China and 100MW of wind farms in Pakistan. NBT also trades Certified Emission Reduction (CERs) rights.
Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC’s international network comprises around 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
In mainland China, HSBC currently has a branch network of 99 outlets spanning 23 cities, including 22 branches and 77 sub-branches. HSBC is one of the largest investors among foreign banks in mainland China, having invested over US$5 billion in the growth of its own operations and in select Mainland financial services entities, including a 19% stake in Bank of Communications, a 16.8% stake in Ping An Insurance, and an 8% stake in Bank of Shanghai.
Suzlon, with its subsidiary Repower, is the world’s third largest wind turbine supplier by installed capacity. Suzlon’s global workforce of 14,000 personnel spreads across operations in 21 countries, manufacturing facilities in 3 continents and R&D centers throughout Europe and Asia. Suzlon has been manufacturing in China since 2007, where they currently employ over 900 employees. With focus on innovation, an integrated value chain, and reliable and efficient customer solutions leading to 229MW of installed turbines in 2009, doubling the figure in 2008.