Wragge & Co's Banking and Finance team has advised Pension Insurance Corporation (PIC), a specialist provider of insurance solutions for defined benefit pension funds, and a large UK institutional investor on a £60 million solar bond purchase – the UK's largest solar bond deal.
Banking partner Chris Brierley led the transaction with assistance from associate Jonathan Segal. The bond was issued by infrastructure, environmental and private equity asset management group Foresight. Listed on the London Stock Exchange, it will be used to refinance the group's existing portfolio of UK solar assets, located in Kent, Somerset and Wiltshire.
Chris Brierley said: "Market conditions as well as regulatory changes in the banking sector mean that investors are frequently looking to bond instruments to raise capital, and the low risk profile of operating solar plants is particularly attractive. Negotiating the best deal for our clients drew on our full regulatory knowledge and energy sector expertise."
Allen Twyning, Investment Manager at PIC said: "Following a number of recent pension insurance transactions which have taken our assets to over £7 billion, we continue to seek opportunities which help diversify our portfolio and match our liabilities. In this regard, infrastructure investment is increasingly important to us, and this transaction builds on two direct investments we made last year. We will seek further opportunities. A robust legal structure is key in any debt transaction and we were grateful for the advice given by Wragge & Co that helped us achieve that goal"
Derek Goodban, head of Wragge & Co's cross-firm energy team, added: "The investigation and implementation of new financing models continues to be of keen interest to the renewables sector and we expect that to continue as the market matures. Having advised on the UK's first solar bond Wragge & Co has now advised on its largest. This was a fantastic project for the firm to be involved in and underlines once again our role at the cutting edge of the renewables financing market."
Foresight is an established investor in the Solar Photovoltaic (PV) Infrastructure Sector with more than £310 million of solar assets under management in the UK, Italy, Spain and the United States.
Independent Debt Capital Markets (IDCM) acted as arranger and sole bookrunner and was advised by Sidley Austin LLP.
PIC provides tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension funds. PIC has £7bn in assets and has insured more than 65,000 pension fund members. Clients include FTSE 100 companies, multinationals and the public sector. Wragge & Co has been advising PIC since December 2012 when it purchased a £40 million bond from UK solar developer Solar Power Generation.
Wragge & Co's 22-lawyer Banking & Finance team provides a partner-led service and top-quality legal advice. Bringing a commercial and pragmatic approach to deals, the team advises banks, corporates, private equity companies and public bodies on a full range of domestic and cross-border instructions. Highlights include acting for HSBC Leveraged Finance on a multi-million pound private equity deal and helping Sanctuary Housing Association with a £300 million bonds issue.
They work closely with a cross-firm, sector-focused Energy team, which also includes experts in regulatory, construction, corporate, real estate, environmental and planning matters. Legal 500 2012 praised the team's "excellent, and increasingly international" practice as well as its "superb service". Latest deals include advising HSBC Bank plc, IFC, Nedbank and Standard Chartered Bank on $500 million oil and gas deal.
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