First wrapped bond to finance solar plants in Europe
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.
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.