Mizuho Bank, MUFG Bank, Crédit Agricole Corporate and Investment Bank, ING Capital, Banco Santander (New York Branch), and KfW IPEX-Bank have financed Stonepeak’s acquisition of a 50% interest in Dominion Energy’s Coastal Virginia Offshore Wind project. Milbank advised the lenders.

Under the sale of the non-controlling interest, Dominion Energy, listed in New York and headquartered in Richmond, Virginia, will retain full operational control of the construction and operations of the project, and Stonepeak will have customary minority rights.

At closing, Dominion Energy received proceeds of US$2.6 billion, representing reimbursement of approximately 50% of project-to-date capital investment. Stonepeak will fund 50% of remaining project costs as they are incurred.

The 2.6-gigawatt Coastal Virginia Offshore Wind project is located 43.45 kilometres off the coast of Virginia Beach, and is currently the largest offshore wind farm under construction in the United States. Upon completion, the project will consist of 176 Siemens Gamesa turbines and three offshore substations in a nearly 113,000-acre lease area with capacity to power up to 660,000 homes.

Stonepeak is one of the world’s largest infrastructure investors in large energy projects such as offshore wind. It has around US$70 billion in assets under management.

With this transaction, Dominion Energy says it has now completed its business review debt reduction initiatives. During the review, the company announced transactions that represent approximately US$21 billion of debt reduction. It has closed the sales of Cove Point LNG, East Ohio Gas, Questar Gas, Wexpro, and Public Service Company of North Carolina. It has also completed the fuel securitization at Dominion Energy Virginia.

These actions have improved Dominion Energy‘s balance sheet, reduced its risk profile, and established a renewed focus as a pure-play, state-regulated electric utility business, the company says.