Allianz Global Investors has invested on behalf of its clients in the Beaver County, Oklahoma-based Balko Wind project. No financial terms were disclosed. KeyBank N.A. served as placement agent. D. E. Shaw Renewable Investments, L.L.C. owns Balko Wind.
14 February 2017 Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today that it has made an investment on behalf of its clients into the Balko Wind project (“Balko Wind”). Balko Wind is a 300MW installed capacity wind farm located in Beaver County, Oklahoma.
Affiliates of D. E. Shaw Renewable Investments, L.L.C. (“DESRI”) own Balko Wind. AllianzGI provided funding to refinance Balko Wind’s existing bank financing.
The transaction was executed as a “back-leverage” loan in order to tailor the solution to the structure that DESRI had in place.
This is the first infrastructure debt renewable energy investment made by AllianzGI in a project sponsored by DESRI. KeyBank, N.A. acted as Placement Agent and provider of other ancillary debt facilities.
“Balko Wind is another important milestone in our US Infrastructure Debt strategy. DESRI is in the forefront of renewable energy investing and our ability to provide financing solutions is a testament to AllianzGI’s growth in the market. This transaction is one of the few examples of institutional investors providing back-leverage financing to US utility scale wind projects, a market traditionally served by commercial banks. We are excited to continue offering our clients exposure to segments of the market traditionally less accessible to them,” said Jorge Camina, Director, Infrastructure Debt.
AllianzGI has been a leading provider of institutional infrastructure debt solutions to the European market since 2013 and entered the U.S. market in 2015. With the achievement of the financial close of Balko Wind, the AllianzGI infrastructure debt platform has now made over $2.25 billion of investment commitments to infrastructure assets in the US over a period of 20 months, with more expected to follow.
D. E. Shaw Renewable Investments, L.L.C. (DESRI) announced the acquisition of Balko Wind from Apex Clean Energy (Apex) in January 2015. Balko Wind is a 300 MW installed capacity wind energy project in Beaver County, Oklahoma. The original financing for the acquisition and construction of the project was provided by Santander Bank, N.A., KeyBank, N.A., Citi, and Banco de Sabadell, S.A. Commitments for tax equity financing were provided by affiliates of Bank of America Merrill Lynch, General Electric Capital Corp., Google Inc., and Citi.
The construction of Balko Wind was completed in 2015. The project comprises 162 GE 1.85-87 wind turbines that are estimated to produce enough energy to power about 111,000 homes. The project benefits from one of the strongest wind resources in the state of Oklahoma and has power purchase agreements with the Public Service Company of Oklahoma and Western Farmers Electric Cooperative. Over its lifetime, the project is expected to generate an estimated $33.75 million in new tax revenue for Beaver County and local schools. It is also expected to create a dozen long-term, high-quality local jobs.
The AllianzGI Infrastructure debt team has completed investments of $9.2 billion between the US and Europe since 2013. The U.S 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, the Long Beach Civic Center P3 project and Grande Prairie Wind.
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 800 MW.
Milbank Tweed Hadley & Mc Cloy acted as legal counsel to the AllianzGI investors and Latham & Watkins LLP as counsel to DESRI.
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 D. E. Shaw Renewable Investments, L.L.C.
D. E. Shaw Renewable Investments (DESRI) and its affiliates own and manage long-term contracted renewable energy assets in North America with a portfolio of more than 27 projects totaling approximately 1,300 megawatts of capacity. DESRI is a member of the D. E. Shaw group, a global investment and technology development firm with more than $40 billion in investment capital as of October 1, 2016, and offices in North America, Europe, and Asia.