Allianz Global Investors Closes First Infrastructure Debt Renewable Energy Project in the US with a $400 Million Investment in Grande Prairie Wind

  • This is the largest wind energy project in Nebraska, owned by BHE Renewables, and will increase Nebraska’s wind energy by nearly 50 percent

NEW YORK--()--Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today that it has made an investment of over $400 million on behalf of its clients into the Grande Prairie Wind project (“GPW”). The GPW project is a 400-megawatt wind farm in Holt County, Nebraska – the largest wind energy project in the state’s history – owned by BHE Renewables, a subsidiary of Berkshire Hathaway Energy.

The project will increase Nebraska’s wind energy capacity by nearly 50 percent and represents the first project in the state for BHE Renewables. This is also the first infrastructure debt renewable energy investment made by AllianzGI in the US market.

The financing consisted of unlisted bonds with a 20-year term that were privately placed with US and European investors via AllianzGI’s established infrastructure debt platform. BHE Renewables will use the proceeds to reimburse the costs of the construction that began in 2015 and will be completed by the end of 2016.

Commenting on the transaction, Paul David, Head of Americas, Infrastructure Debt at AllianzGI, said:

“We are proud to complete our first private infrastructure debt investment in the US renewable energy space with a milestone project sponsored by BHE Renewables. GPW is an excellent showcase of how AllianzGI can deliver value-added solutions to infrastructure Sponsors through its established institutional platform. BHE Renewables was able to tailor the structure to their goals and close the financing under an expedited timetable through a one-stop-shop funding solution that matches the investment mandate of our long-term infrastructure investor-clients in the pensions and life Insurance industries.”

AllianzGI has been a leading provider of institutional infrastructure debt solutions to the European market since 2013 and entered the US market in 2015. With the achievement of the financial close of GPW, the AllianzGI infrastructure debt platform has now made close to $2 billion of investment commitments to infrastructure assets in the US over a period of 18 months, with more expected to follow.

Notes to Editors:

BHE Renewables announced in April 2015 the plan to start the construction of GPW. The Project has a long term Power Purchase Agreement with Omaha Public Power District.

The AllianzGI Infrastructure debt team has completed investments of $8.9 billion between the US and Europe since 2013. The US infrastructure portfolio 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 and the Long Beach Civic Center P3 project.

In addition to providing debt finance, the Allianz group has two other initiatives contributing to the growth of renewable energy in the US. Allianz Capital Partners manages the provision of tax equity for wind farms and, to date, has committed over $700m in the US. Allianz Risk Transfer provides an innovative risk management solution for hedging wind volume risks for wind farms and has successfully executed Proxy Revenue Swaps with several counterparties in the US totaling more than 1.5 GM.

About Allianz Global Investors

Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have more than EUR 481 billion in AUM for individuals, families and institutions worldwide and employ over 500 investment professionals. At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.

Data as at 30 September 2016

About BHE Renewables

BHE Renewables is a wholly owned subsidiary of Berkshire Hathaway Energy and is headquartered in Des Moines, Iowa. Since 2012, BHE Renewables has invested extensively in solar, wind, geothermal and hydro projects. As a long-term owner of assets, the company’s operating wind projects include the 300-megawatt Jumbo Road project near Hereford, Texas; 168-megawatt Pinyon Pines I and 132-megawatt Pinyon Pines II projects, located near Tehachapi, California; 81-megawatt Bishop Hill II project in Henry County, Illinois; and the 400-megawatt Grande Prairie project in Holt County, Nebraska. More information is available at www.bherenewables.com.

Disclaimer:

Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This material does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted. This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations. This material is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC); Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424, Member of Japan Investment Advisers Association] ; Allianz Global Investors Korea Ltd., licensed by the Korea Financial Services Commission; and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan.

Contacts

Allianz Global Investors
Alastair Fairbrother, +44 (0)20 3246 7432
Alastair.Fairbrother@allianzgi.com
Megan Frank, +1-212-739-3501
Megan.Frank@allianzgi.com
Kelly Smith, +1-212-739-3505
Kelly.Smith@allianzgi.com

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