The financing is for nine operational photovoltaic parks located amongst some of the sunniest parts of Europe. This is the first European wrapped bond in the solar sector and similarly structured projects are expected to follow. The project is majority owned by funds managed by Madrid based Q-Energy, a leading investor and asset manager in the solar sector which also provides O&M services for the portfolio.

The parks are expected to generate revenues under the Spanish regulatory regime for renewables over almost 20 years. The amortising bond has been assigned an ‘AA’ (stable) credit rating by S&P for a weighted average life just below 10 years.

Financial guarantees are provided by London based Assured Guaranty (Europe) plc, part of NYSE listed Assured Guaranty Ltd. group

Debt service on the project bonds is based on regulatory revenues, leading to an underlying project rating of ‘BBB’. In addition, scheduled bond interest and principal repayments are covered under a Financial Guarantee.

The innovative financing solution allows Talanx to achieve an attractive risk return profile in the current low yield environment with the diversification and regulatory capital advantages of a sustainable infrastructure investment. In addition to the debt provided by the European clients of Ampega as Asset Manager of the Talanx Group, the transaction included South Korean debt investors.