Reinsurance News

Assured Guaranty in €342mn Spanish solar bond deal

24th February 2020 - Author: Matt Sheehan

Assured Guaranty (Europe) SA (AGE SA), an indirect subsidiary of financial guaranty insurer Assured Guaranty, has entered into a financial guarantee transaction related to €342 million of solar bonds issued by Madrid-based asset manager Qualitas Equity.

Solar energyThe deal guarantees principal and interest payments on the bonds, which were issued on February 18, 2020 by a Qualistas-owned entity, Pride Investments S.A.

The portfolio comprises 23 photovoltaic solar plants across Spain, and the issuance of the bonds represents Assured Guaranty’s second transaction in the renewables industry in Spain since June 2019.

This is also the first transaction to be guaranteed by Assured Guaranty’s newly opened European insurance company, Assured Guaranty (Europe) SA, which is domiciled in Paris.

Dominic Nathan, Managing Director, Infrastructure Finance, Assured Guaranty, commented:

“The transaction, coming just eight months after our first renewable energy wrap in Spain, evidences not only our appetite for the industry and the Spanish market but also the increasing demand from international institutional investors in bonds wrapped by Assured Guaranty,” said Dominic Nathan, Managing Director, Infrastructure Finance at Assured Guaranty.

“We are very pleased with the execution of this deal, which reinforces our relationship with Q‑Energy, one of Europe’s leading PV Solar players. Spain represents a key market for Assured Guaranty, one where we intend to keep providing sponsors and investors with competitive financing solutions,” Nathan continued.

Nick Proud, Directeur Général, AGE SA, and Senior Managing Director – International and Structured Finance at Assured Guaranty, also commented: “This transaction is the largest renewable energy transaction guaranteed by Assured Guaranty and the first guarantee provided by Assured Guaranty (Europe) SA, which we established in Paris to serve the European market.”

“Once again, this transaction evidences Assured Guaranty’s ability to add value in markets where we anticipate further and increasing potential growth,” he added.

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