Euler Hermes Rating: Offshore Wind as a New Asset Class for Institutional Debt Investors

HAMBURG, Germany, September 16, 2015 /PRNewswire/ --

Euler Hermes Rating is broadening its existing expertise in the Renewable Energies sector through a greater focus on transactions in the Offshore Wind segment. By assigning an issuance rating to a registered bond issued to finance a large offshore wind energy project, Euler Hermes Rating is making a new asset class accessible to institutional investors. At the same time, registered bonds replace traditional bank-based project financing.

Issuance rating makes investment risk transparent 

"In the current low-interest environment particularly insurance companies and pension funds are looking for attractive investment opportunities," said Ralf Garrn, Managing Director of Euler Hermes Rating GmbH; a credit rating agency registered since 2010 by the ESMA. "Infrastructure investments are becoming more attractive due to their comparatively high and stable returns as well as for a balanced portfolio weighting. At the same time, investors place very high demands on the safety of their investments. The issuance rating enables investors to assess the risk posed by the investment in the best possible way."

The registered bond issued by a German special-purpose entity with a term of nearly 10 years will be used to finance the acquisition of an investment in an offshore wind farm with an output of 330 MW in the German North Sea. The financing will be supplemented by the issue of a subordinated equity tranche. Investors include the biggest European insurance companies and the US private equity infrastructure investment fund Global Infrastructure Partners (GIP). DONG Energy will be an investor in the offshore wind farm and be responsible for project development and for the construction of the offshore plant.

"The issuance rating makes an important contribution to increasing transparency in the context of project finance and opens up a new asset class to institutional investors," said Torsten Schellscheidt, Senior Rating Analyst at Euler Hermes Rating. "Over the past few months we have therefore put together a new team of experts for the rating of offshore wind farms, thereby pooling our rating expertise and the long-standing experience of Allianz Climate Solutions GmbH."

Further background information on this subject can be found at http://www.eulerhermes-rating.com

Euler Hermes Rating GmbH is registered as a credit rating agency (CRA) in accordance with Regulation (EC) No. 1060/2009 of the European Parliament and Council and is accredited by BaFin as an external credit assessment institution (ECAI).

Press contact:
Ralf Garrn - ralf.garrn@eulerhermes-rating.com
Friedensallee 254
22763 Hamburg
Tel.: +49-040-8834-640
Fax: +49-040-8834-6413