Pension Insurance Corporation (PIC) has backed Q-Energy in Spain with a further £120m (€132m) of debt funding.

The insurer of defined benefit pension funds said it provided the debt funding, as sole investor, for a further 12 solar parks.

In February last year, PIC made its first investment in the Spanish solar energy sector by investing £190m in solar bonds by funding 21 solar parks owned by Q-Energy. It later made an additional £277m funding in June 2020 to fund 29 solar parks, also owned by Q-Energy.

The solar plants, which have been in operation for 12 years, benefit from the Spanish regulatory framework for the full term of the bond, PIC said, adding that the ”framework provides payments from the Spanish electricity system, which guarantees an agreed level of return and ensures predictable cashflow”.

Florence Carasse, senior debt origination manager at PIC, said PIC is a committed investor in renewable energy with total investments of more than £1bn in the sector, as a socially beneficial outcome of PIC’s purpose.

“This transaction meets our long-term requirements and will help pay the pensions of our policyholders, whilst delivering much-needed funding into infrastructure projects that are tackling climate change.”

Manuel Espinosa, a member of Q-Energy’s investment team, said: “We are pleased to have completed our third round of debt funding with PIC in Spanish photovoltaic plants. PIC’s latest investment in solar energy demonstrates the strength of the sector and their confidence in its long-term outlook.

“PIC has yet again demonstrated flexibility and expertise in constructing deals with renewable energy assets.”

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