Allianz Global Investors Infrastructure Debt team closes its first A/B Bond with IDB Invest and also first deal in Uruguay Allianz Global Investors has made an investment on behalf of its clients into the U.S. private placement refinancing of El Naranjal and Del Litoral, a portfolio of two operational solar PV plants located in the department of Salto, Uruguay, and owned by Atlas Renewable Energy.
The refinancing structure includes a 24-year fully amortizing senior secured IDB Invest – A/B Bond 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) that 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 U.K.-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.
“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,” said Gian Franco Carassale, IDB Invest’s principal investment officer.
The 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.
“We’re entering a new phase of renewable energy financing, with longer-term tenors increasingly accommodated via capital markets,” said Carlos Barrera, Atlas Renewable Energy’s CEO. “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.
