Legal & General Investment Management’s real asset division has made its first renewable energy transaction in continental Europe by providing €120m to refinance one of Qualitas Energy’s (Q-Energy) Spanish solar portfolios.
LGIM Real Assets business said it committed the capital, on behalf of f Legal & General Assurance Society, to refinance the portfolio of 21 operational assets across Spain.
The investment forms part of a total €342m transaction, with additional investment coming from another institutional investor.
Tom Sumpster, head of infrastructure finance at LGIM Real Assets, said: “This is a landmark transaction for LGIM Real Assets as our first renewable energy investment in continental Europe.
”As we actively continue to diversify our assets and increase our global exposure, this investment forms part of our strategic focus on responsible investing.”
Sumpster said the renewable energy sector has become increasingly attractive for the company’s long-term investments due to its secure returns in conjunction with a wider environmental, social and governance (ESG) significance.
”Across Legal & General, we are taking a proactive approach to ESG and it is crucial that we continue to invest in strong performing assets, where we also see prospects to drive value and offer secure returns.”
Daniel Parejo, head of M&A and financing at Q-Energy, said: “This is another major investment for us in the Spanish renewable energy sector and we are delighted to work with LGIM to strengthen our presence in this important and thriving sector.
“LGIM impressed us with their flexibility and thorough understanding of the market.”