Corporate News

Talanx finances offshore wind farm with structured bond

  • Talanx becomes first insurer to act as lead manager
  • Total of EUR 556 million in debt financing
  • Talanx subscribes up to EUR 300 million of the ten-year bond
  • Financing of DONG Energy’s Gode Wind 1 ensures power for around 340,000 German households

Acting as lead manager for a group of institutional investors, Talanx has co-ordinated a EUR 556 million bond to finance Global Infrastructure Partners’ 50% acquisition of DONG Energy’s Gode Wind 1 offshore wind farm. Of this EUR 556 million bond issuance Talanx is providing up to EUR 300 million. The bond has a term of ten years. This marks the first time that a group of institutional investors led by an insurer has financed an offshore wind energy project.

The other institutional investors forming part of the debt consortium are German insurance companies and asset managers. The ten-year bond is being issued by an investment vehicle belonging to Global Infrastructure Partners (GIP). GIP will acquire 50% of the Gode Wind 1 project from Danish energy group DONG Energy.

“Gode Wind 1 is a perfect match for us. We are very delighted to have teamed up with two very experienced and reputable sponsors, DONG Energy and GIP,” said Dr. Thomas Mann, Chief Investment Officer of Talanx Asset Management. “In addition to that, the investment demonstrates Talanx’s capability to structure, arrange and finance large scale transactions with in-depth investment experience and product capability.”

Talanx is deliberately increasing its exposure to infrastructure investments to compensate for the decrease in yields due to low interest rates. “The transaction marks the first time that Talanx has provided significant amounts of debt capital for an infrastructure project,” adds Dr. Immo Querner, CFO of Talanx AG. “Our medium-term plan is to invest up to EUR 2 billion in infrastructure projects, and we have systematically built up our expertise in this area in recent years. In the long term we could potentially invest up to EUR 5 billion in a broadly diversified range of alternative investments.”

Issuance of the bond depends on approval by the competition authorities for GIP’s acquisition of 50% of the shares in Gode Wind 1. The decision is expected by the end of September.

The plans for the Gode Wind 1 project entail the construction of 55 wind turbines with a combined output of 330 megawatts, enough to provide power for around 340,000 homes. Together with its sister project, Gode Wind 2, it will be Germany’s biggest offshore wind farm. The turbines will be installed approximately 33 km north-west of Norderney, one of the East Frisian Islands. It is expected that the bond will be certified as a “green bond”, and thus officially be rated as sustainable.

About DONG Energy
DONG Energy is one of the leading energy groups in Northern Europe, headquartered in Denmark. Around 6,500 ambitious employees are engaged in exploring and producing oil and gas, developing, constructing and operating offshore wind farms and power stations, and providing energy to residential and business customers on a daily basis. Group revenue was DKK 67bn (EUR 9.0bn) in 2014. DONG Energy is market leader in development, construction and operation of offshore windfarms.

For further information, see DONG Energy.

About Global Infrastructure Partners (GIP)
GIP is a leading global, independent infrastructure investor. It invests in the energy, transport and water/waste sectors and currently manages approximately $16.1 billion for its investors. The companies in GIP’s portfolio have combined annual revenues greater than $6 billion and employ approximately 22,000 people.

For further information, see Global Infrastructure Partners.


This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.