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Offshore Wind Journal

Trio of Japanese companies forms fund investing in overseas offshore wind

Tue 19 Feb 2019 by David Foxwell

Trio of Japanese companies forms fund investing in overseas offshore wind
Sumitomo’s interest in the Race Bank offshore windfarm in the UK is among the ‘seed assets’ held by the new fund

Three high-profile Japanese organisations have established a fund through Spring Infrastructure Capital Co that will raise money from Japanese investors to finance offshore wind power projects outside the country.

The companies in question are Sumitomo Corporation, Sumitomo Mitsui Banking Corporation, and Development Bank of Japan overseas. The fund will acquire UK assets held by Sumitomo Corporation as seed assets, including the company’s interest in the Race Bank and Galloper offshore windfarms.

This is the first fund in Japan designed to invest in offshore wind power projects overseas. Together the companies are aiming to raise up to ¥30Bn (US$271M).

Sumitomo Corporation is actively engaged in developing and running renewable energy projects worldwide, and it now has 1.4 GW of generating capacity. By completing the development/construction of these projects and then selling to the fund some of the assets that have begun stable operation, Sumitomo Corporation said it will “achieve strategic asset replacement while it works to develop more infrastructure projects.”

Sumitomo Mitsui Banking Corporation has a track record of providing more than ¥3Tn in renewable energy project finance globally. As one of the top players in finance for offshore wind power generation, it has financed power plants with a total capacity of more than 10 GW.

Development Bank of Japan will leverage its knowledge and investment experience in UK offshore wind power projects as it manages the company. Because the fund will be working to provide Japanese institutional investors with opportunities to invest in offshore wind power projects and other renewable energy projects and because the fund will be helping Sumitomo Corporation accelerate activities in renewable energy projects inside and outside Japan, the bank has decided to supply funding through the use of so-called special investment operations.

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