Allianz Global Investors Infrastructure Debt team closes its first A/B Bond with IDB Invest and also first deal in Uruguay



Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today that it has made an investment on behalf of its clients into the US Private Placement refinancing of El Naranjal and Del Litoral, a portfolio of two operational solar PV plants located in the department of Salto, Uruguay owned by Atlas Renewable Energy.

Key takeaways

  • AllianzGI acts as the anchor investor in the refinancing of two solar PV plants in Uruguay
  • This is the second investment in Latin America as part of the expanded infrastructure debt strategy initiated in 2018, and the first A/B Bond investment with IDB Invest
  • AllianzGI has deployed over $4.2 billion in 15 infrastructure debt investments in the Americas since 2015

Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today that it has made an investment on behalf of its clients into the US Private Placement refinancing of El Naranjal and Del Litoral, a portfolio of two operational solar PV plants located in the department of Salto, Uruguay owned by Atlas Renewable Energy.

The refinancing structure includes a 24-year fully amortizing senior secured IDB Invest - A/B Bond (rated Baa3 by Moodys) in which AllianzGI, on behalf of its clients, acted as anchor investor. The refinancing also included a subordinated IDB Invest A/B Bond (rated Ba2 by Moodys) which was sold to other institutional investors. The bonds received a Green Bond Assessment of GB1 (Excellent) by Moodys. The projects have long term power purchase agreements with Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE), the Uruguayan state-owned utility company.

The sponsor, Atlas Renewable Energy (Atlas), is one of the portfolio companies of UK-based emerging markets investor Actis. The refinancing of the construction debt was spearheaded by IDB Invest and DNB Markets, Inc., who acted as sole placement agent.

This investment is part of AllianzGI Infrastructure Debt’s expansion into Latin America initiated in 2018. This transaction is the second investment under such expanded strategy and follows the recent infrastructure investment in the Fermaca El Encino – La Laguna gas pipeline in Mexico. It is also the first A/B Bond infrastructure debt investment for AllianzGI with IDB Invest, the private sector arm of the Inter-American Development Bank.

“The senior and subordinated bond issuances under IDB Invest’s B-Bond program are a good example on how capital market solutions can complement increasingly scarce long-term bank financing. AllianzGI is a major infrastructure debt player in Europe and the U.S. and we are pleased to have them join our effort to mobilize institutional capital into Latin America and the Caribbean” says Gian Franco Carassale, IDB Invest’s Principal Investment Officer.

“We’re entering a new phase of renewable energy financing, with longer-term tenors increasingly accommodated via capital markets. This is, we believe, enabled in large part by the increased predictability and confidence in the long-term performance of Solar PV and Wind technologies. We anticipate LatAm renewables as an asset class will continue on a steep growth path as energy demand rises, with increasing allocation. We’re delighted to work with distinguished investors and financiers, such as AllianzGI, to put together compelling financing solutions tailored to this growing asset class.” says Carlos Barrera, Atlas Renewable Energy’s CEO.

Commenting on the transaction, Jorge Camina, Director of Infrastructure Debt at AllianzGI, said:

“This investment in partnership with Atlas and IDB Invest is an important milestone in our Infrastructure Debt strategy in Latin America. AllianzGI’s clients are very keen on investing in high-quality infrastructure assets in the region and in working with leading sponsors and financing partners.”

AllianzGI has been a leading provider of institutional infrastructure debt solutions to the European and US market since 2013 and 2015 respectively. AllianzGI Infrastructure Debt has expanded its strategy to Latin America in 2018. The AllianzGI infrastructure debt platform has now made over $4.2 billion of investment commitments to infrastructure assets in the Americas over a period of about three years, with more expected to follow.

Notes to Editors:

Atlas Renewable Energy acquired El Naranjal and Del Litoral from SunEdison in 2017 while still in construction. The projects were successfully being completed and put into operation shortly thereafter.

The AllianzGI Infrastructure debt team has completed 53 investments for a total of over $12.8 billion between the Americas and Europe since 2013. The infrastructure portfolio in the Americas has several large infrastructure investments, the first being the $700 million acquisition stage investment in the Indiana Toll Road in May 2015, subsequent investments include Chicago Skyway, the Long Beach Civic Center P3 project, Grande Prairie Wind, Balko Wind, Moapa Solar, Moapa Solar, Mount Signal 3, California Flats, Palouse Wind and more recently the 8point3 Investco2 portfolio. The first investment in Latin America was the refinancing of the El Encino – La Laguna natural gas pipeline in Mexico closed earlier this month.

In addition to providing direct lending, the Allianz group has other initiatives contributing to the growth of infrastructure in emerging markets. Allianz has a partnership with the International Finance Corporation (IFC) under the Managed Co-Lending Portfolio Program to co-invest $500 million alongside IFC debt financing for infrastructure projects in emerging markets worldwide. There is a similar initiative in place with the Emerging Africa Infrastructure Fund, where AllianzGI manages €100 million investment on behalf of Allianz.

For further information please contact:

Megan Frank Tel. +212 739 3501

About Allianz Global Investors:

Allianz Global Investors is a leading active asset manager with over 700 investment professionals* in 25 offices worldwide and managing more than $630 billion in assets for individuals, families and institutions.

Active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.

Active is: Allianz Global Investors
Data as of 31 March 2018 (*as of 31 December 2017).

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AllianzGI completes 50th Infrastructure Debt deal



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