Lenders’ technical advisor and technical due diligence

K2 Management (K2M) has been engaged by the project as the lenders’ technical advisor for the wind farm. In this role K2M is using its experience in offshore wind to provide guidance to the Inch Cape team and prospective lending parties during project financing, with a view to continuing support to lenders for the duration of the agreed debt term through construction and operations monitoring. K2M is also providing technical due diligence on all aspects of the project design, delivery, operations and costs. K2M will further provide an independent financial-grade energy yield assessment for the project.

Outcomes

This role for Inch Cape strengthens K2M’s existing nearly 20 years’ experience in providing lender’s advisory service to offshore wind projects. The changes seen in the sector during recent years including global market conditions, supplier availability and technological developments requires consideration and review of innovative aspects to support prospective lenders’ understanding and risk evaluation of new challenges. With ever more sizeable projects in more extreme environments, both long-standing and emergent offshore wind developers and investors need – more than ever before – total clarity on the financial and development challenges that projects of this scale entail.

Inch Cape facilitated the due diligence process to date by providing clear documentation on strategy and business model decisions, and frequent, open communication between K2M and the relevant package managers to respond to technical queries and concerns. This enabled K2M to access the required detail and documentation on the project design to review all technical aspects of the wind farm. As an ongoing process, K2M looks forward to reviewing additional detail on the project as development continues, and add to its knowledge of global supply chain, project design and project execution.

Will Sheard, Director, Due Diligence & Analysis Services said:

 “Financing of offshore wind farms is a complex process which requires the cooperation and aligned objectives of many stakeholders, not least, the project team. K2 Management brings many years of experience as a lender’s technical adviser having secured financial close on many large and complex offshore wind projects around the world. But we can’t do it alone.

The positive interaction we have had with the Inch Cape team has allowed us to continue to progress the financing process while the project has had to adapt to the changing market and technical requirements of recent years. We are very pleased to be involved in this innovative project and look forward to continued cooperation and success. ”

February 2024

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