Assured Guaranty's European insurance subsidiary completes first deal

Assured Guaranty (Europe) has guaranteed principal and interest payments on approximately €342 million of bonds issued by Pride Investments, the renewables-oriented fund of Madrid-based asset manager Qualitas Equity.

The issuance represents Assured Guaranty’s second transaction in the renewables industry in Spain since June 2019. This is the first transaction to be guaranteed by Assured Guaranty’s newly opened European insurance company, which is domiciled in Paris.

The portfolio comprises 23 photovoltaic solar plants spread across a number of Autonomous Communities in Spain. All plants benefit from the 2013 Spanish Regulatory Regime, which provides the project with payments from the Spanish Electricity System in order to achieve a predetermined level of return. The contractor responsible for the operations, maintenance and asset management of the project is Q‑Energy Asset Management, a wholly owned subsidiary of Qualitas Equity.

According to the company, the 21-year fixed-rate bonds benefited from low long-term interest rates and were issued in a private placement with UK investors. Application has been made to list the bonds on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange.

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. 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.”

Nick Proud, directeur général, AGE SA, and senior managing director – international and structured finance, Assured Guaranty, said: “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.”