Luxcara has advised on the structuring of a green project bond to finance a portfolio in Finland consisting of three wind farms with a total capacity of 163MW.
A three-digit million-euro amount of senior secured green project bond has been structured with an international consortium of pension schemes (“Versorgungswerke”) and insurance companies.
This includes a German pension scheme, entities of the Canadian insurance company Sun Life Assurance Company of Canada and a German insurance company.
Equity is provided by a renewable energy fund for institutional investors, advised by Luxcara.
Deutsche Bank provides Agency services for the project.
It is the first green project bond of its kind for a wind farm portfolio with a PPA in Finland and builds on Luxcara’s unique track record in this area, the company said.
Such green project bonds enable institutional investors to support the energy transition.
With a capacity of approximately 163MW, the portfolio will provide more than 140,000 Finnish households with renewable energy.
Luxcara managing director Marc Brehm said: “We are very happy about this green project bond for our 163MW PPA-based wind farm portfolio in Finland.
“This green project bond expands our track record and is especially unique thanks to the structure, size and the composition of the international lenders’ consortium.”
The wind projects Välikangas, Sievi, and Pihtipudas are located in the Finnish region of North Ostrobothnia, offering excellent wind conditions.
The offtaker under the PPA is the Norwegian utility Agder Energi.