AEI China Power acquires wind farm developer NBT New Energy Development Company

(24/05/2010)

AEI China Power Limited has acquired 67 percent of NBT (Baicheng) New Energy Development Company, Ltd., a company formed in China that recently began construction on the 49.5MW first phase of a 200MW wind farm in Baicheng, Jilin Province, China. AEI acquired the equity from a subsidiary of NBT AS, a Norwegian wind farm developer focused on promoting renewable energy in China.

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.

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.

“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 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.

“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.

Related categories:  Wind power