The British company North Star has secured funding for the expansion of its offshore wind fleet. A total of £275 million is available.
North Star’s strategy appears to be paying off: the shipping company has secured financing from an expanded group of lenders. The total funding amounts to £275 million, which is equivalent to approximately €321 million. The money is to be invested in the further expansion of the fleet. North Star is the world’s largest operator of Service Operation Vessels (SOVs), which are designed for use in offshore wind farms. North Star recently acquired four further vessels from Edda Wind.
“The secured financing commitments fully cover existing obligations arising from shipbuilding and provide additional capital for further acquisitions and new-build projects,” the shipping company announced. The loans have been granted in pounds and euros.
North Star’s circle of lenders now includes new partners Rabobank, KfW IPEX-Bank and LBBW; furthermore, increased commitments have been secured from existing lenders RBS, AIB, the Scottish National Investment Bank and RBC.
“This deal reflects the scale we have achieved and the path we have taken,” said Fraser Dobbie, CFO of North Star. “As the company has grown, so too has our ability to attract new lenders and secure better terms and conditions – a self-reinforcing dynamic. Rabobank, LBBW and KfW IPEX-Bank are precisely the calibre of new partners we are looking for – complementing the banks and institutions that have been supporting us for years.”
For customers, this package provides additional assurance that the vessels committed to in the tender process will actually be made available.
“Having established the company as the world’s leading owner and operator of SOVs and ERRVs, we now want to build on our operational and financial expertise,” said CEO Gitte Gard Talmo. “In doing so, we are assessing which other maritime offshore markets could offer our investors the right balance of risk and return.”
Since entering the offshore wind sector in 2021, North Star has invested more than £750 million in SOVs and, according to the company, has secured “significant contracts”, including from Dogger Bank, RWE, EnBW and Siemens Gamesa Renewable Energy. With the acquisition of the Edda Wind vessels, the fleet has grown to 14. North Star plans to have over 40 SOVs by 2040.
