Aviva and AXIS launch new Lloyd’s consortium to power UK renewable energy growth
Aviva and AXIS have announced a new Lloyd’s consortium to support new renewable energy projects, helping enable progress towards the UK’s 2030 net zero ambitions.
The partnership brings together two of the London Market’s leading renewable energy insurers, combining underwriting expertise and capacity across onshore wind, solar and battery energy storage systems into a single, coordinated solution. It is also the first Lloyd’s consortium specifically focused on UK onshore renewable energy, making it a distinctive offering in the market.
The consortium is designed to simplify placement for brokers and clients, offering a clearer and more efficient route to secure cover for renewable energy risks, while helping to meet growing demand for capacity in the sector.
Operating within Lloyd’s, the ‘A-Squared Consortium’, with a total capacity of £200m, will focus on onshore renewable energy construction and operational risks for new UK renewable energy projects.
The consortium will:
Offer up to 100% line size for qualifying risks, or take significant lead positions
Provide consistent underwriting expertise across technologies
Streamline quoting and placement through a coordinated approach
Deliver shared risk engineering insights
Cover includes property damage, business interruption and third-party liability, with flexibility to support more complex requirements through referral.
Vicky Kent, Head of Renewable Energy and Engineering at Aviva, said: “The UK’s renewable energy ambitions require pace, scale and certainty to meet 2030 targets. This new consortium brings together the strength of Aviva and AXIS to offer brokers and clients a simpler, more coordinated way to secure cover for renewable projects.”
Peter Fitzsimmons, Head of International Onshore Energy at AXIS, said: “This consortium delivers large-scale capacity to meet the current demand and future growth of the UK’s onshore renewable energy industry. Through this collaborative approach, together we are providing elevated service and specialist coverage for new renewables projects across the UK, and supporting the country’s ambitions to build a world-leading clean energy industry.”
Spain: CaixaBank gets EIB backing to issue up to €150 million in new financing for renewable energy and energy efficiency projects
The European Investment Bank (EIB) and CaixaBank have signed a guarantee agreement that will enable the Spanish bank to issue up to €150 million in new financing for renewable energy and energy efficiency projects in Spain, mainly, and across Europe. The agreement consists of a de-linked risk sharing operation in the form of an EIB investment of up to €150 million, committing CaixaBank to finance projects worth this amount.
The eligible projects will include renewable energy (mostly solar plants and onshore wind farms, with the option to extend to offshore), energy-efficient buildings (including affordable housing, student accommodation, elderly care centres and logistic centres) and other energy efficiency renovation activities.
This operation is in line with the EIB’s sustainable energy and natural resources public policy goal and its climate action and environmental sustainability cross-cutting objective. The transaction also contributes to the REPowerEU plan’s goal of increasing energy security and reducing EU dependence on fossil fuel imports, as well as to the European Wind Power Package, towards which the EIB has recently contributed with a €5 billion tailored initiative designed to further accelerate a just and swift transition to net zero by supporting wind energy equipment manufacturing companies.
Around half of the investments are expected to take place in less developed regions, where per capita income is less than 75% of the EU average, underlining the EIB’s commitment to support the strengthening of the European Union’s economic, social and territorial cohesion.
Greece: €400 million EIB backing to MYTILINEOS to accelerate renewable energy transition
New investment by MYTILINEOS to further accelerate the development and deployment of solar PV parks and battery energy storage across Greece and other EU countries
Investment provides boost to support growing share of renewables in the EU’s energy and electricity network.
The European Investment Bank (EIB) has committed €400 million to support a significant new investment for MYTILINEOS Energy and Metals (MYTILINEOS), which will accelerate renewable energy production across Greece and other EU states.
MYTILINEOS will deploy a new portfolio of solar PV and battery storage systems (BESS) projects in the period through 2027 that will add capacity of approximately 2.6GW. The investment is estimated to total €2.5 billion, with projects rolled out across the EU.
The new facilities will be located in various less developed and transition areas across Greece and the EU. The EIB’s financing will thus support new investment in cohesion regions where per-capita income is lower than EU average, thus affirming the EU bank’s commitment to equitable growth and the convergence of living standards.
EIB Director General, Head of Operations Jean-Christophe Laloux and Christos Gavalas, MYTILINEOS’ Chief Treasury & IR Officer and Executive Board Member, signed the 10-year loan contract in Athens on Dec. 21, 2023. This new financing agreement is another part of the EIB’s tailored package of support to RepowerEU, the EU’s ambitious multi-billion plan to reduce dependence on fossil-fuel imports, accelerate the green transition and help Europe cut its carbon emissions to net zero by 2050.
“Scaling up renewable energy investment is crucial to harnessing Greece’s solar and energy storage potential and contribute to Europe’s energy transition,” said Jean-Christophe Laloux, Director General at the EIB. “To reach ambitious carbon reduction targets, Europe’s green and sustainable future must be significantly accelerated with projects such as this one, increasing the use of renewables, storage infrastructure, and preventing waste.”
“Leveraging on the long standing and valuable co-operation we have with EIB, we have secured the Bank’s significant support through this €400 million milestone agreement that will further strengthen MYTILINEOS’ financial capacity to accelerate the deployment of its investments in solar PV parks and battery energy storage systems projects. This strategic investment advances our prominent commitment to sustainable development and contributes to Europe’s ambitious plan to reduce fossil fuel dependence and achieve a carbon-neutral future by 2050,” said Christos Gavalas, Chief Treasury & IR Officer and Board Member at MYTILINEOS.
In addition to the deployment of solar and storage capacity, the new EIB financing will help upgrade the existing electricity grid and enable better management of power supply, increase reliability, and cater for future demand.
The systems are expected to provide real-time information to end-customers, facilitate energy savings and support demand response, and will thus contribute to addressing issues that slow the achievement of the EU’s and of national long-term energy and climate goals.
Building on the EIB’s support for energy investment across Greece and the EU
The European Investment Bank has financed long-term energy investments with a range of Greek energy partners, such as the PPC and HEDNO, since 1964.
Over the last decade the European investment bank has provided more than €4.3 billion for energy investment in Greece with PPC and other Greek energy partners, including improving connections to Greek islands and harnessing renewable energy, and accelerating energy efficiency investment.
Greece: InvestEU – EIB backs PPC Renewables for 230MWp capacity solar farms to increase renewable energy production and support just transition efforts in Greece’s Western Macedonia region
EIB commits €28.5 million financing for PPC Group’s renewable energy arm. The EIB financing will reach a maximum amount of €35 million over the coming months.
New financing will help support the construction of three solar farms.
The EIB loan is backed by an EU budget guarantee under the InvestEU programme.
The new 230MWp capacity solar farms in Kozani in the Western Macedonia Just Transition region supported by the EIB and backed by InvestEU are part of the ambitious Greek National Energy and Climate Plan. They will allow, along with other investments, for the greater use of renewable energy resources and reduction of fossil fuel dependency in the electricity sector, as well as improving security of supply for long term demand.
The project, which is one of the largest solar energy projects developed and under implementation in Greece, is also part of the strategic transformation plan of the PPC Group which puts a special focus on the promotion of renewable energy.
“To make a success of the green transition we need significant and sustained investment. This agreement to finance the construction of new solar farms in Greece is an excellent example of how the InvestEU programme is mobilising funding in support of green energy generation across Europe. InvestEU is delivering the investment necessary to make crucial energy projects a reality,” said Paolo Gentiloni, EC Commissioner for the Economy.
“We are particularly pleased that this project promotes renewable and clean energy for the people of Greece. It also enhances energy security and sustainability and will help the country meet its ambitious renewable energy targets. Looking ahead, the EIB is following developments in the Greek electricity sector and stands ready to finance sound projects in line with its Climate Bank Roadmap, the commitment to increase the level of support to climate action and environmental sustainability to exceed 50% of its overall lending activity.” said Christian Kettel Thomsen, EIB Vice-President responsible for lending in Greece.
“With full awareness and understanding of the importance and significance of the work of PPC Renewables in Greece, we are pleased but also driven by a great sense of responsibility for the confidence with which PPC Renewables is surrounded by the European Investment Bank, Eurobank and the National Bank of Greece. PPC Renewables is faithfully serving the PPC group business strategy which on the one hand creates conditions for corporate success and on the other hand contributes to the change of the country’s energy map. The progress of PPC Renewables to date creates only optimism that this financing will simultaneously achieve its important national objective while having a tangible, measurable economic effect,” said Konstantinos Mavros, CEO of PPC Renewables.
EIB deliver support in close cooperation with local financial institutions
The EIB financing is part of a €102.4 million Project Finance debt package comprising of €95.1 million long term facilities and €7.3 million medium term construction VAT financing. EIB worked together with Eurobank SA (ERB) and National Bank of Greece SA (NBG), which committed in equal shares 70% of the long-term facilities and 100% of the medium-term VAT financing.
Building on EIB’s 59-year support for energy investment across Greece through PPC
The EIB has financed long-term investment by PPC Group since 1964. Over the last decade the bank has provided more than €4.3 billion for energy investment in Greece via PPC and other public and private Greek energy partners, including improving connections to Greek islands, harnessing renewable energy, and accelerating energy efficiency investment.
Austria: EIB and UniCredit Bank Austria enable companies to invest in renewable energy and energy efficiency
The EU bank is providing UniCredit Bank Austria with a framework loan of up to €92 million.The long-term loan supports Austria’s goal of generating 100% of electricity from renewables by 2030.The European Investment Bank (EIB) and UniCredit Bank Austria will support investments in small and medium-sized renewable energy and energy efficiency projects in Austria. The EIB will make a framework loan of up to €92 million available to the Austrian bank, which will then create a credit portfolio of up to €200 million for financing clean energy projects.
The demand for renewable energy and energy efficiency projects is high: the Austrian government aims to generate 100% of electricity from wind, solar and hydropower by 2030. Decentralised photovoltaic systems are expected to play a significant role, including a 100 000 solar roofs programme. Hydropower, along with pumped storage and wind farms, are also part of the government’s programme.
These ambitious government goals have created a high demand for new, climate-friendly energy projects in Austria. This has caused a certain lack of competitively priced long-term financing sources being available for smaller and medium-sized renewable energy and energy efficiency projects.
The EIB aims to fill this market gap together with partner banks and other financial intermediaries. To this end, last year the EU bank provided a climate action programme loan to Austria. The framework loan for UniCredit Bank Austria announced today is the first sub-operation within this EIB programme.
UniCredit Bank Austria has a solid record in financing for renewable energy and energy efficiency in Western Europe with a sizeable pipeline of initiatives in Austria.
EIB Vice-President Thomas Östros said: “We are very pleased to cooperate with UniCredit Bank Austria to get renewable energy and energy efficiency projects up and running. Austria already benefits from one of Europe’s most developed and efficient green energy markets with a strong record of successful climate action investments as well as an important pipeline of new projects expected in the coming years. The EIB will remain a strong and reliable partner in developing these sectors in Austria and supporting Europe’s transition to a fossil-free future.”
Dieter Hengl, member of the Management Board of UniCredit Bank Austria responsible for Corporates, said: “Climate protection and sustainability have long been major strategic topics for our bank. The financial sector as a whole has a central role to play in the transition to a low-carbon economy. Channelling money flows into sustainable, climate-friendly industries, activities and initiatives is the key joint challenge of the future. I am very pleased that we are the first bank in Austria to have signed the climate action facility loan with the EIB. Together with the EIB, we are helping companies to become sustainable and climate-friendly and can thus enable our customers to invest in these important issues at particularly advantageous conditions.”
UniCredit Bank Austria is one of the leading and best capitalised major banks in Austria and part of UniCredit, a pan-European commercial bank with a unique service offering in Italy, Germany, and Central and Eastern Europe. Digitalisation and our commitment to ESG principles are key enablers for our service. They help us deliver excellence to our stakeholders and create a sustainable future for our clients, our communities and our people.
MARSH JLT Specialty Expands Global Renewable Energy Team with Canada and UK Appointments
Marsh, the world’s leading insurance broker and risk adviser, announced two senior appointments within Marsh JLT Specialty’s Renewable Energy team, as part of its continued expansion in the global renewable energy sector.
Joanne Silberberg has been appointed as Canadian Renewable Energy Leader. Ms Silberberg joined Marsh in 2004 as part of the graduate programme, and since then has worked in a number of specialist roles within Australia, primarily focused on the Energy & Power industry. In January, she relocated to Calgary to be part of the leading Energy & Power team. In this newly-created role, Ms Silberberg will report to Richard Doherty, Head of Marsh JLT Specialty, Canada and Amy Barnes, Energy & Power Practice Leader, US and Canada.
Dan Gumsley joins Marsh as an Account Manager in the Renewable Energy team and will focus on the growing offshore wind market in the UK. Mr Gumsley has over 20 years insurance experience, both as a broker and an in-house insurance manager, and joins the business from one of Europe’s leading offshore wind developers. Based in London, Mr Gumsley will report to Hamish Roberts, Power Leader.
Commenting on the appointments, Andrew George, Global Head of Energy & Power, Marsh JLT Specialty, said: “As the world begins to emerge from lockdown restrictions, many countries are considering how, as a consequence of the pandemic, they may accelerate their decarbonisation programmes to take advantage of the recent lower demand for traditional power sources and petroleum.
“Depending on the location, the renewable energy sector can offer countries flexible, reliable, and proven technologies — including solar, onshore wind, offshore wind, bio-mass, hydro and battery power. Working as part of our global Renewable Energy team, Joanne and Dan will play key roles in delivering the services and solutions to support our energy clients in Canada and the UK as they transition towards more sustainable and carbon-neutral futures.”
Aviva launches specialised insurance for renewable energy
Aviva has launched an integrated package of insurance designed specifically to support large companies in the complex market of renewable energy, including onshore windfarms, solar power and battery storage.
Aviva Renewable Energy covers all the insurance needs of renewable energy companies globally which have operations in their home and overseas markets. Insurance is a key requirement for lenders in the renewables market. It provides Aviva’s commercial customers with a single package of insurance available through one underwriting team to cover the whole life cycle in the following areas:
– Marine project cargo- Construction and operational- Third party liability- Terrorism cover
Designed for global renewable energy brokers and their commercial clients, Aviva Renewable Energy signals the insurer’s recognition of the specific needs of this growing market, and the important role renewable energy plays in the fight against climate change.
The launch of Aviva Renewable Energy is the latest initiative by the insurer to support action to tackle climate change following its role in July 2019 as a founding signatory to the Finance Principles of the Powering Past Coal Alliance Finance Principles.
Aviva was also the first global insurer to become carbon-neutral in 2006, while Aviva Investors has invested almost £5 billion in green assets on behalf of Aviva and external clients since 2015. This includes:
£3.1bn invested in low-carbon infrastructure, such as wind farms and solar panels
£1.7bn invested in green bonds
Aviva is already working with several clients in the renewable energy market from small, national providers to those with large, international portfolios; and has been establishing a specialist underwriting team, which includes Deputy Chief Underwriting Officer & Head of Speciality Matthew Gordon, Head of Renewable Energy & Engineering Victoria Kent and Renewable Energy Underwriting Manager Nick Evans.
Patrick Tiernan, Managing Director of Commercial Lines, said:“At the start of 2019, Aviva UK exited the standalone operational fossil fuel power market as part of its commitment to help tackle climate change. “We are now taking another important step in our commitment by launching a specialist renewable energy proposition providing insurance solutions for the full lifecycle of renewable energy risks worldwide. “This is an exciting time for Aviva as we look to support the critical growth ambitions necessary in the renewable energy sector to reduce our reliance on fossil fuels.“This is a small step in our sustainability journey as a commercial insurer. We are already working with our largest brokers and clients to ensure we can be their partner of choice as the UK economy prepares for carbon neutrality in 2050.”
EUR 7 billion EIB backing for communications, renewable energy and innovation
– EUR 1.3 billion to improve internet and mobile telecommunication services
– EUR 1.7 billion for business and corporate innovation investment
– EUR 1.5 billion for renewable energy and energy transition
The Board of the European Investment Bank (EIB) yesterday agreed to support EUR 6.9 billion of new financing. This includes backing new investment across Europe and around the world to improve communications, renewable energy, sustainable transport, social housing and education infrastructure.The new EIB financing includes EUR 1.7 billion of new support for corporate research and development, and business investment through direct financing and credit lines with local banks.
The meeting also approved a new Energy Lending Policy to further strengthen the impact of EIB support for energy transition and a new strategy to deliver on the EIB’s ambition to increase climate action and environmental sustainability over the next decade.
Improving communications for millions of people across Europe
The EIB approved more than EUR 1.3 billion new financing to enhance mobile and broadband communications for millions of people in France, Italy and Hungary.New projects backed by the EIB include the roll out of ultra high-speed fibre to more than 5.8 million households across France and upgrading the Italian mobile phone network to enable access to high-speed mobile services by 99% of the population.
Accelerating energy transition and scaling up renewable energy
The EIB agreed EUR 1.5 billion of new financing to support renewable energy and energy efficiency projects around the world.This includes support for new wind farms in Austria and Lebanon, 15 new solar power plants across Spain, as well as small-scale climate action and renewable energy projects in France, Kazakhstan, the South Caucasus, Latin America and Africa.New energy network investment to expand electric vehicle charging in Estonia, provision of smart meters in Ireland and more efficient street lighting across Italy were also approved by the EIB board.
Fostering innovation and private enterprise
At the November meeting the EIB approved EUR 1.6 billion of new direct and indirect financing for corporate innovation and private sector business investment.This includes lending programmes to finance innovation investment with leading local banks in Germany and Italy, support for private equity investment in Spain and Slovakia and schemes to enhance access to finance by local SMEs in Austria and Georgia.Four new schemes to provide local and foreign currency business financing will help to overcome currency related investment barriers in Belarus, Ukraine and Africa.
Transforming sustainable urban transport
2.3 million people living in the Indian city of Bhopal and commuters across France will benefit from new sustainable transport investment agreed by the EIB.This will support construction of the first two metro lines in Bhopal and provision of 330 electric buses and charging infrastructure to replace diesel buses with zero emission transport in towns across France.
Strengthening agricultural production
Agriculture and bio-industry investment across Europe will be supported by a new EUR 700 million financing scheme approved by the EIB board. This follows the successful implementation of a pilot agriculture financing programme over the last year.The EIB also agreed new financing to support renewal of agricultural machinery in Spain, agri-food investment in Morocco and upgrading grain storage and transport in Ukraine.Improving access to social housing and quality educationHouseholds across France and Ireland will benefit from construction of 80,000 new social housing units to be financed by the EIB in France and new support for energy efficient affordable housing in Ireland.The EIB also agreed to finance construction of 150 new primary schools in Tunisia and upgrading 37 schools, kindergarten and sports centres in Finland.
Enabling sustainable development in vulnerable countries
Projects across the Caribbean that contribute to sustainable development goals will be supported by a new streamlined financing programme approved by the EIB. The Board also approved a new scheme to support projects in Colombia in areas most impacted by recent conflict.In Brazil 140,000 households will be connected to clean drinking water for the first time and 300,000 homes benefit from wastewater services under a regional water investment programme backed by the EIB
EUR 2.2 billion of investment backed by the Investment Plan for Europe
The European Fund for Strategic Investments (EFSI), the financial pillar of the Juncker plan will support EUR 2.2 billion of new investment for projects approved by the EIB board.
Crédit Agricole Assurances joins forces with Banque des Territoires and Groupama to develop its renewable energy investment company alongside Engie
Crédit Agricole Assurances, Banque des Territoires and the Groupama Group announced that they signed an agreement under which Banque des Territoires and Groupama will enter the capital of Predica Energies Durables (PED), Crédit Agricole Assurances’ dedicated subsidiary for investments in renewable energy production assets alongside Engie, the French market leader for solar and wind power generation. Following this transaction, the two new investors will respectively hold 22% and 18% of PED’s capital, with Crédit Agricole Assurances remaining PED’s majority shareholder with 60% of its capital.
Created in 2014, PED is Crédit Agricole Assurances’ investment vehicle for its strategic partnership with Engie to jointly hold onshore wind and solar assets in France. This partnership, with a total installed base of around 2GW at end-2019, represents the largest platform for operational renewable assets in France.
The arrival of Banque des Territoires and the Groupama Group alongside Crédit Agricole Assurances will make it possible to further strengthen the partnership, increasing the capacity for investment of PED, France’s leading institutional investor in renewable energies.
“The development of renewable energies is in line with the 2°C roadmap. As a responsible investor, we want to contribute, through our investments, towards achieving this goal. Our partnership with Engie represents a major operation for this strategy. To enable it to deploy its full potential, we are delighted to welcome on board Groupama and Banque des Territoires, two long-term investors who share our commitments”, explains Jean-Jacques Duchamp, Deputy CEO of Crédit Agricole Assurances.
“As a mutual insurer and responsible investor, the Groupama Group is firmly focused on climate change as one of its core commitments. We are delighted and proud to be contributing in this way to the development of renewable energies in France”, confirms Mikaël Cohen, Group Chief Investment Officer of Groupama.
“We are investing in renewable energies in order to put in place the financial resources needed to make concrete progress with the energy transition towards more sustainable regions. This partnership is part of this ambition: with Crédit Agricole Assurances and Groupama, Banque des Territoires is supporting Engie and making it possible to produce more renewable energies in France”, declared Olivier Sichel, Director of Banques des Territoires.
These three signatories of the Principles for Responsible Investment (PRI), Crédit Agricole Assurances, Caisse des Dépôts for Banque des Territoires and Groupama, take environmental, social and governance (ESG) factors into account in their investment decisions. This outstanding transaction once again illustrates their shared commitments in relation to these major challenges.
The transaction’s close is expected by December 2019, subject to the usual conditions being met in this area.
NATIONAL BANK OF GREECE S.A. ACTS AS EXCLUSIVE UNDERWRITER OF AN UP TO EUR 41.745M FINANCING TO EGYPT’S ELSEWEDY ELECTRIC FOR THE ACQUISTION OF A PORTFOLIO OF RENEWABLE ENERGY PROJECTS IN GREECE
National Bank of Greece S.A. (“NBG”) is pleased to announce the successful underwriting and arrangement on an exclusive basis of an up to EUR41.745m bilateral bond loan financing pack (the “Facility”) to Elsewedy Electric (the “Company”).
The Facility is successfully utilized, with its proceeds being used to partially finance the Company’s acquisition of a portfolio of renewable energy projects in Greece. The Facility is structured as a long-term, non-recourse portfolio financing to the Company, aligned to the customary principles of the international leveraged buyout market. The transaction was completed in accordance with a tight timeline customised to meet the Company’s needs, whilst addressing diverse structural complexities and confidentiality requirements implied by private transactions of such nature.
Mr. Vassilis Karamouzis, Assistant General Manager, Corporate & Investment Banking at NBG comments: “We are pleased to support Elsewedy Electric, an established Energy player of the Middle East, in its strategic entry to Greece. The local secondary Energy market evolves into a key driver of Foreign Direct Investment in the country, due to its relative value mostly in terms of locked tariffs of existing projects. The transaction falls at the forefront of NBG’s corporate strategy to optimally employ our robust liquidity, as it bridges our top capabilities in financing Energy sector initiatives, with our strong focus to facilitate international demand for Greek risk.
“White & Case LLP and Potamitis Vekris law firm acted respectively as NBG’s international and Greek legal counsel in relation to the transaction.