📋 Tender Overview
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 6 a loan agreement with Seagreen Phase 1 OFTO Project Limited (Seagreen), a British company invested in by Kyuden International Corporation, Kyushu Electric Power Transmission and Distribution Co., Inc., and Equitix Investment Management Limited of the United Kingdom. JBIC will provide project financing*1 amounting to up to approximately GBP283 million (JBIC portion) for an offshore electricity transmission project for the Seagreen offshore wind farm in the UK. The loan is co-financed with Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd., and Aviva Life & Pensions UK Limited, bringing the total co-financing amount to approximately GBP568 million.
For this project, Seagreen will own and operate facilities for offshore electricity transmission that are located about 27 km off the east coast of Angus in the northeast of Great Britain. Seagreen will transmit the electricity generated by the offshore wind farm, with a total generation capacity of 1,075 MW, to the National Grid for 24 years.
The government of the United Kingdom amended its Climate Change Act in 2019, setting a legal target of reducing CO2 emissions to net zero by 2050 and promoting the introduction of renewable energy, and the project conforms with this energy policy of the government. Also, the expertise gained from the electricity transmission service for the offshore wind farm is expected to be utilized in future projects in Japan and other countries in addition to the United Kingdom.
In the Sixth Strategic Energy Plan released in October 2021, the government of Japan stated that amid the global move for decarbonization, it is important for Japan to improve the international competitiveness of its industry through support for the development and social implementation of decarbonization technologies by Japanese corporations. In the Infrastructure System Overseas Promotion Strategy 2030, approved by the Ministerial Meeting on Strategy relating to Infrastructure Export and Economic Cooperation in December 2024, the government views social transformations the world is facing, such as green initiatives and decarbonization, as opportunities for growth. It has set forth a vision to address global challenges, including climate change, and has also established a policy of supporting the overseas development of high-quality infrastructure. The loan is in line with this policy and will financially support an overseas infrastructure project that Japanese companies have invested in and will be involved in the operation and management for the long term, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their infrastructure businesses toward decarbonization by drawing
