Offshore wind installer Seaway7 has secured a £370 million loan to expand its UK business, with more than 100 new Aberdeenshire jobs promised by the end of the decade.
UK Export Finance (UKEF) provided an 80% loan guarantee to the offshore firm, part of the Subsea7 group, allwing it to access a £370 million funding package from HSBC.
The UK Government -backed deal is part of UKEF’s Export Development Guarantee (EDG) scheme.
It will allow Seaway7 to develop its UK sites and fund its current fleet – plans for which include the creation of 100-plus jobs in the north-east offshore wind industry by 2030.
Seaway7 has secured work on a string of major offshore wind developments
Seaway7 operates a fleet of offshore vessels equipped to tackle cable lay, heavy lift, transportation and wind turbine installation.
Its UK base in Westhill, Aberdeenshire, manages the building, use and maintenance of vessels belonging to the company.
It has secured work on a string of major offshore wind developments in recent years.
This includes installation at the Seagreen scheme off Angus, which was completed last month, as well as a recent logistics and installation award – worth up to £604 million – for ScottishPower Renewables’ East Anglia Three wind farm off the east Suffolk coast.
Further afield, Seaway7 has also undertaken work in Taiwan, the US and continental Europe.
The firm’s UKEF guarantee covers 80% of the total loan, which has been coordinated by HSBC, with Citibank, Credit Agricole Corporate and Investment Bank, DNB, HSBC and ING as lead arrangers.
UKEF said its backing would support the firm in winning and servicing engineering, procurement construction and installation (EPCI) contracts for fixed offshore wind projects.
This will in turn generate UK export revenue.
In the last year, UKEF has:
💷 Provided £6.5 billion of support for UK businesses, particularly SMEs
💼 Supported up to 55,000 jobs across the UK
📈 Contributed up to £4.1 billion to the economyRead more 👉 https://t.co/b74uBln3Qq#EmpoweringEveryExporter pic.twitter.com/gdglykjfr5
— UK Export Finance (@UKEF) June 28, 2023
Exports Minister Lord Offord said: “This is a great development for Scotland’s renewable energy industry.
“Through UK Export Finance, this government is unlocking new opportunities for sustainable trade and investment – and securing the long-term prosperity of the United Kingdom.”
This is a great development for Scotland’s renewable energy industry.”
Lord Offord
HSBC global co-head of export finance Philip Lewis saidd: “We are thrilled to have supported Seaway7 by coordinating this important transaction, which will further enable the company to provide invaluable support to the offshore wind industry and help meet the rising demand for renewable energy”.
UKEF issued support worth a total of £3.3billion for UK exports under the EDG during the financial year 2022-23.
Conversation