AMP Capital backs Stonepeak’s Swancor buy with $145m debt investment

The debt investment marks AMP Capital's first in Taiwan and supports the construction of Formosa 2, a 376MW offshore wind project.

Australian fund manager AMP Capital is investing $145 million in mezzanine debt that will support Stonepeak Infrastructure Partners‘ acquisition of Taiwanese offshore wind farm developer Swancor Renewable Energy, as well as the construction of Formosa 2, a 376MW project billed as one of Taiwan’s largest offshore wind farms once completed by the end of 2021.

The investment, which marks AMP Capital’s first in Taiwan, is being provided through AMP Capital Infrastructure Debt Fund IV, which closed on its $4 billion hard-cap in October, a spokesman for the firm told Infrastructure Investor.

Around 50 percent of IDF IV has been invested in energy and digital infrastructure to date, the spokesman said.

Stonepeak acquired a 95 percent stake in the renewables division of Swancor, a Taiwanese chemical manufacturer and offshore wind developer, last August. The New York-based firm did not disclose financial details on the deal, which was its first outside North America, but according to a statement Swancor issued at the time, the price ranged between $25.9 million and $101.4 million.

Formosa 2, in which Swancor holds a 25 percent stake, has already secured a 20-year fixed price power purchase agreement for all of the energy it will produce with state-owned Taiwan Power Company. In addition to Swancor, Formosa 2 is also backed by Japanese power utility JERA and Macquarie Capital.

JERA is also the largest shareholder in Formosa 3, which is under construction and has a potential generating capacity of 2GW, acquiring a 43.75 percent stake in the asset in March. The project’s other shareholders are Macquarie’s Green Investment Group and German energy supplier EnBW Energie Baden-Württemberg.

Swancor also developed Formosa 1, Taiwan’s first operational offshore wind asset, which began operating last year, in partnership with Danish renewables developer Ørsted, JERA and Macquarie Capital.