Pension Insurance Corporation (PIC) has invested £277m (€304m) in eight solar energy parks located in Spain that are owned by Q-Energy’s renewable energy investment vehicle, FSL.

The investment, which is in the form of debt funding, follows a debt investment of £190m that PIC made in February 2020 for 21 Q-Energy-owned solar parks that were largely located in Southern Spain.

The investment is guaranteed by Assured Guaranty and has an AA rating from S&P.

The solar plants further benefit from the Spanish regulatory framework for the full term of the bond, as this provides payments from the Spanish electricity system that guarantee an agreed level of return and ensure predictable cashflows.

Banco de Sabadell and Banco Santander acted as bond joint lead managers.

Q-Energy associate, Manuel Espinosa, commented: “We are once again delighted to be able to work with PIC to arrange this debt funding. This is another significant investment in renewable energy by PIC and it signals their confidence in us and in the strength of the underlying asset. We continue to be impressed by PIC’s flexibility and thorough understanding of the market.”

The investment in the solar plants, which have been operational for almost a decade and can provide enough energy to supply thousands of homes, means that PIC has invested almost £1bn into the renewable energy sector and £467m into Spanish solar energy.

PIC debt origination manager, Florence Carasse, said: “This is a secure transaction in a resilient and sustainable sector that will provide the cashflows to pay the pensions of our policyholders for decades into the future, as well as helping to reduce global carbon emissions.

“We are delighted to once again have worked with the teams at Q-Energy and Assured Guaranty and look forward to working with them on future projects.”

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