Strasser further opens the market to institutional investors with the first issue of a Climate Bonds Certified fixed rate loan in Europe for long-term financing of a solar lease business model
What’s it all about?
German based Strasser Capital has announced today successful of an EUR 30m placement with Dutch based manager Delta Lloyd Asset Management. The loan is certified under the Climate Bonds Standard and is secured against a “highly granular” pool of residential solar leases held by Strasser’s largest subsidiary MEP Werke.
The announcement notes this is the first issue of a Climate Bond Certified, 20-year green senior secured fixed rate loan in Europe for long-term financing of a solar lease business model, a new development in green finance.
We’ll have more to say when we discuss this new green finance initiative in our first Market Blog for 2017, due out in a couple of weeks.
Meanwhile, these comments from various stakeholder gives some flavour to this new development in green loan securitisation.
Who's saying what
Konstantin Strasser, CEO and founder of Strasser Capital
“Throughout the world investors are looking for certified and rated green investment and financing opportunities.”
“The MEP green loan has a fixed interest rate and is secured by a granular, diversified portfolio of 20-year solar lease receivables which makes it the perfect investment for long-term investors such as pension funds or insurance companies.”
Ulrich Bogner, Director Corporate Finance and Investments
“With our partner NIBC bank as well as our advisors DWF Germany Rechtsanwaltsgesellschaft mbH, Hexagon Finance and Advisory Ltd. and Clifford Chance, we were able to develop this unique financing solution for the photovoltaic sector.”
Tamer Fawaz, Portfolio Manager Delta Lloyd Asset Management
“As investors we are convinced that MEP will contribute to bringing this innovative financing concept to the forefront of the energy transition from traditional to renewable energy sources in Germany. We are delighted that with Strasser Capital we have found not only a partner who searches for new solutions, but also one that is able to implement them strategically and consistently.”
Thom Rasser, CEO of NIBC Bank Deutschland AG
”This successful refinancing proves MEP’s long-term business model and we are delighted to have worked with Strasser Capital in this innovative financing and look forward to further long-term financings from the MEP Green Financing Programme.”
Rick Gambetta, Managing Director, Hexagon Finance and Advisory Limited
“MEP’s Solar Lease portfolio, with its granularity and predictable income stream, is a natural asset class for long-term asset-backed financing. Hexagon is extremely pleased to have advised on this transaction, the first distributed generation solar PV financing transaction closed outside the U.S. “
Dr. Arne Klüwer, partner at Clifford Chance
"This is the first structure combining whole business securitisation with traditional mobile lease receivables techniques, and constitutes an innovative blueprint for a new asset class.”
Sean Kidney, CEO Climate Bonds Initiative
“This is green finance leadership from Strasser Capital and marks a positive start to 2017. They have set out to lead the EU market, garnered support from major stakeholders and together they have all shown that is possible to develop green investment pathways. Well done all round!”
“We need other financial institutions to follow and develop well-structured green securitization models, long term green investment propositions and help build market depth.”
The Last Word
Strasser first mooted this development back in June 2016, foreshadowing that they were currently structuring a long-term note issuance programme; “secured on a granular portfolio of MEP solar lease receivables.”
At the time, Konstantin Strasser characterised the future issuance as “the first of its kind in Europe,” and it is.
Even better, growth is on the way. NIBC Bank Deutschland AG has granted underlying solar lease issuer MEP a second senior loan warehouse facility, opening the path for a second fixed rate financing product to be issued.
Building green finance in the EU to the trillion size scale needed to meet 2030 energy and climate goals was the subject of a comprehensive report released by the European Commission in mid-December. Following, on December 22nd, the announcement of an Expert Group on Sustainable Finance whose members include our very own CEO Sean Kidney.
This new deal from Strasser is a small but significant example of what’s required.
It’s underlying features and hence attractiveness to institutional investors highlight part of the green finance future the new EU Expert Group is looking towards.
Another important first from the European green finance market. 2017 is off to a great start.
‘Till next time,
Climate Bonds Communications
Note: MEP Werke is a Climate Bonds partner. A full list of partner organisations is available on our website here.
Disclaimer: The information contained in this communication does not constitute investment advice and the Climate Bonds Initiative is not an investment adviser. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not advising on the merits or otherwise of any investment. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind for investments any individual or organisation makes, nor for investments made by third parties on behalf of an individual or organisation.
