Work is under way on site. Credit:

Funding secured for SeAH Wind UK

UK Export Finance and South Korea’s export credit agency have helped SeAH Wind UK to secure £367m from Standard Chartered Bank and HSBC UK to build the world’s largest wind monopile manufacturing facility in Redcar.

The arrangement represents UKEF’s first ever guarantee for inward investment issued under its ‘Invest-to-Export’ Export Development Guarantee product, signalling the availability of multimillion-pound support for companies investing in new UK exporting opportunities.

This is also the first joint financing between UKEF and K-Sure (Korea Trade Insurance Corporation) for a UK investment by a Korean company.

SeAH Wind UK, a subsidiary of South Korean steel company SeAH Steel Holding, announced its decision to invest and broke ground at Teesworks Freeport last summer.

The confirmed support which is now being announced will secure the project’s future. The £367m financing comprises £257m supported by UKEF and £110m supported by K-Sure.

UKEF said that the financing will secure inward investment which will create 750 jobs in Teesside and ensures construction of the world’s largest wind monopile factory in Redcar.

Issuing its first ever ‘Invest-to-Export’ loan guarantee to secure overseas investment in British industry, UKEF together with K-Sure has ensured that SeAH Wind UK can fund the construction project – worth almost £500m – with £367m in financing from Standard Chartered Bank and HSBC UK. The facility was also eligible for longer and more flexible repayment terms as a ‘Clean-Growth’ facility.

Wind monopiles act as the foundation for most offshore wind turbines and are critical to the growth of the global renewable energy sector.

Lord Offord, minister for exports, said: “This landmark deal brings substantial overseas investment to Teesside and consolidates the UK’s place as a world leader in offshore wind – and renewable energy – expertise and exporting.

“Through UK Export Finance, this government is bringing in new investment for the UK’s world-class manufacturing sector and securing the long-term prosperity of the United Kingdom.

Yoshi Ichikawa, head of structured export finance for Europe at Standard Chartered, said: “With our long-standing partnership with UKEF and K-Sure and the Bank’s commitment to accelerating the transition to net zero, we are proud to structure this financing for our important client SeAH Group and contribute to the UK supply chain in the wind sector.”

Chris Sohn, SeAH Wind, said: “We are delighted to invest in the UK. This project is significant in that it contributes not only to the growth of UK’s local economy but also global de-carbonization efforts. Our aim is to become a global leader in the offshore wind supply chain. We would like to express our gratitude to UKEF and K-Sure for their support.”

Upon completion of the factory, SeAH Wind UK expects to export monopiles to US and European markets.

The government said that the ongoing construction has already secured a deal worth over £100m for British Steel and will create opportunities for the UK supply chain in sectors like manufacturing, construction and logistics.

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