MEAG, the €250bn asset manager of German insurers Munich Re and Ergo, and Luxcara, a €2.3bn infrastructure fund manager, have structured a project bond to finance a wind farm in Norway.
A “lower three-digit million euro” project bond has been placed with investors of Munich Re, while a fund managed by Luxcara will provide equity.
The equity and bond financing will be used to construct the Eikeland-Steinsland windfarm, which has a long-term power-purchase agreement with social media company Facebook.
Holger Kerzel, managing eirector of MEAG, said: “We like to invest in renewable energy and we like to support the energy transition from fossil fuels to renewable energy.
“Financings of the private sector are an important contribution for the development of renewable energy.”
Hamburg-based Luxcara, which was established in 2009, manages European renewable energy infrastructure funds on behalf of institutional investors.