Talanx to finance largest new building programme for educational facilities in Austria

First school project finance deal by institutional investors in Austria
Long-term debt for construction of sustainable vocational school building in Vienna
Talanx Group underscores importance of ESG criteria in investment policy and readiness to invest in public infrastructure projects

The Talanx Group is to invest a double-digit million amount in financing the construction and operation of a sustainable vocational school building in Vienna, the total investment for which will be about EUR 200 million. Following the Group’s participation in Austria’s largest renewable energy project finance deal, it has now also become a finance partner for the country’s largest new school construction project to be implemented via a Public-Private Partnership. The Group’s investment underscores the emphasis it places on ESG criteria in its investment policy and its readiness to directly finance public infrastructure projects.

“By financing the construction of a modern vocational school building, we are supporting both environmental and social sustainability. This reinforces our ESG-based investment policy”, said Dr Jan Wicke, CFO of Talanx AG. “This project finance deal is the first time that institutional investors have participated directly in a tendered school project in Austria. We are proud to be contributing our expertise and partnership-based approach by investing in this exciting project and helping the City of Vienna with its implementation. This is an excellent example of how public and private investors can work together successfully on sustainable infrastructure projects.”

The vocational school building (the “Central Vocational School” in Seestadt Aspern) will be energy-efficient and climate-friendly: state of the art facilities engineering, geothermal temperature control and rooftop photovoltaic systems will reduce the need to source energy externally, while green roofing will store carbon emissions. The plans for the school building provide for seven vocational schools for different trades on a site of almost 29,000 m2, to be attended by 7,500 students. The classrooms with their modern design offer a unique learning environment.

The Talanx Group, which is part of a consortium, is investing in the debt transaction via Ampega Asset Management GmbH – a Talanx AG subsidiary based in Cologne, Germany. More specifically, the Group companies participating in the finance are HDI insurance and neue leben insurance. The finance takes the form of an amortising tranche of long-term debt that Ampega negotiated for insurers. Overall, the finance solution comprises separate tranches for insurance undertakings, commercial banks and the European Investment Bank.

Implementation of the vocational school project, which is part of the City of Vienna’s new building programme for educational facilities, is being lead-managed by Austrian construction company PORR and in partnership with the Quaero Capital European Infrastructure Fund. Construction will start in April 2025 and is scheduled to be completed in 2028.

Disclaimer

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.