This is the Talanx Group’s seventh venture into solar power plant financing. It significantly increases the Group’s overall investment in environmentally friendly power generation from wind and solar farms, which including other infrastructure projects totalled EUR 2.5 billion at the end of 2019. A key goal of Talanx Group’s sustainability agenda, is to expand its green investments, this is yet another example of pursuing that goal.
To date, the Group has only funded photovoltaic solar plants. Now, for the first time it is investing in two neighbouring plants with a capacity of 50 MW each, based on concentrated solar power (CSP) technology. This uses arrays of parabolic mirrors to reflect sunlight and concentrate it onto tubes containing a heat transfer fluid. The heat produced in this way is used to generate steam, which then powers a conventional steam turbine to generate electricity. “We are delighted to put in place the first private credit insured project bond for a CSP project. This is yet another example of working together with long-term partners”, commented Peter Brodehser, Head of Infrastructure Investments at Talanx. “Combining entrepreneurship and a pioneering spirit has allowed us to make another attractive investment as part of the Group’s sustainability strategy.”
Talanx is purchasing EUR 250 million out of a total of EUR 326 million in credit insured project bonds. The credit insurance guarantees the scheduled interest and principal repayments due, to service the bond.
S&P has awarded the project bond a private rating of AA. The bond is fully amortizing and has an average term of less than 10 years and a coupon of 1.9 percent. For Talanx, this represents another innovative transaction with an attractive risk/return profile in the current low-interest environment. In addition, the sustainable infrastructure investment offers diversification advantages and beneficial regulatory capital requirements.
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