North Star secures £425 Million debt investment to lead Europe’s offshore wind sector

North Star secured a substantial debt investment of up to £425 million (US $543 million) to accelerate its fleet expansion with 40 hybrid service operation vessels (SOVs) by 2040, becoming the leading player in Europe’s offshore wind sector.

The committed financial package, worth £225 million, includes term facilities from existing lender IFM Investors. It also comprises committed capital expenditure and working capital resources from banks such as ABN AMRO (sustainability co-ordinator), AIB, NAB, Royal Bank of Scotland, and RBC (sustainability structuring advisor).

Additionally, the facilities include an accordion capacity, allowing for a further £200 million in funding, which provides flexibility to upscale as needed and mitigates financial risk. RBC Capital Markets played a pivotal role as the lead advisor for the transaction.

Fraser Dobbie, North Star chief financial officer, said in a press statement: “The infusion of capital from a combination of institutional and bank investors secures access to the capital required to support our continued growth, and provides validation from the lender market of the excellent progress we have made on our strategic journey to build our business for sustainable, long-term success in the offshore wind market.”

This financial backing offers certainty to potential clients regarding North Star’s ability to deliver vessels as outlined in tender bids, effectively de-risking the process and providing a competitive edge in the industry.

North Star, owned by Partners Group, operates 41 multi-purpose ships in the North Sea from its bases in Aberdeen, Lowestoft, Newcastle, and Hamburg. The company has already deployed three of four newbuild SOVs at the Dogger Bank Wind Farm, with the final asset scheduled for early delivery next year.

Moreover, four more newbuilds are underway, including an SOV for EnBW's He Dreiht wind farm in Germany, another for Siemens Gamesa Renewable Energy at the East Anglia THREE project, and two larger Commissioning SOVs to further support offshore wind clients.