Glennmont Partners (“Glennmont”) has today announced the completion of its first synthetic risk transfer (SRT) transaction through its REBS (Renewable Backed Securities) credit fund. It is the first green SRT deal in Italy and among the first in Europe.
The SRT transaction is structured around a pan-European renewable energy portfolio worth €1.7bn held by Intesa Sanpaolo, covering an exposure to project finance loans in excess of 7 GW of installed capacity in solar, wind, and bio energy power plants. The transaction demonstrates Glennmont’s continued focus on developing new and innovative ways of financing clean energy technologies, and forms a key part of its credit investment strategy to deliver value for its investors.
Furthermore, the transaction underlines Glennmont’s ability to partner with European lending banks looking to optimize or recycle capital on their balance sheet using their renewable energy loan portfolios.
As the first green SRT transaction in the Italian market and one of the first of its kind in Europe, the deal reinforces Glennmont’s growing reputation as a key player in the credit space for clean energy. To date, Glennmont has made credit investments across 7 European countries (Germany, France, Belgium, Sweden, Spain, Italy, & Portugal), and over 1,000 renewable energy assets comprising a total installed capacity in excess of 8 GWs.
Glennmont’s SRT announcement comes shortly after their acquisition by $1tn asset manager Nuveen, as it seeks to enhance its real assets platform. The acquisition aims to accelerate Glennmont’s growth in 2021 with a suite of new products backed by seed capital from Nuveen and its parent TIAA that will target further investment opportunities in European, U.S. and Asian markets.
Scott Lawrence, Co-Founder of Glennmont Partners, says:
“We are delighted to be announcing this landmark transaction. By growing this type of credit solution, Glennmont will continue to partner with more lenders jointly driving innovation and investment in the clean energy sector.
“This latest announcement from Glennmont adds further momentum to our plans for growth following last month’s acquisition by Nuveen, which will be key to accelerating the next phase of the organisation’s evolution as we look to lead the clean energy transition, while delivering value to investors.”