Assured Guaranty backs its fifth Spanish renewables deal in two years
Assured Guaranty Europe (AGE), the Paris-based indirect subsidiary of Assured Guaranty, has guaranteed principal and interest payments on approximately €125 million of bonds issued on May 21, 2021, by Anselma Issuer, an entity owned by Qualitas Venture Capital.
The portfolio backing the bonds comprises 18 photovoltaic solar (PV) plants spread across a number of provinces in Spain. The underlying project is rated BBB, but with AGE’s guarantee the bonds are rated AA by S&P Global Ratings.
The 17-year, fixed-rate bonds took advantage of low long-term interest rates and were privately placed in the UK. Application has been made to list the bonds on the open market of the Frankfurt Stock Exchange. The issuance represents AGE’s fifth transaction in the renewables industry in Spain in the past two years.
All plants in the portfolio benefit from the 2013 Spanish regulatory regime, which provides the project with payments from the Spanish electricity system to achieve a predetermined level of return. The 18 PV plants all have an operational track record of 13-14 years prior to the refinancing.
The contractor responsible for the operations, maintenance and asset management of the project is Q-Energy Asset Management, a wholly owned subsidiary of Qualitas Group.
Linklaters served as AGE’s legal advisors, while the issuer was advised by Watson Farley & Williams Spain. Banco de Sabadell and Banco Santander acted as joint lead managers for the bonds.
Dominic Nathan, AGE’s head of underwriting for infrastructure finance, said the deal “represents our third Spanish solar deal following the outbreak of COVID-19 and proves our continued value to investors and sponsors, particularly under difficult market conditions.”
Nick Proud, directeur général of AGE, and senior managing director of international and structured finance at Assured Guaranty, said: “The transaction shows the continued growth of our European insurance company Assured Guaranty Europe, which began writing business in 2020. We look forward to expanding our European footprint further in key geographies and sectors.”
