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Allianz helps DE Shaw refinance US wind farm debt

This is the financial services provider’s second debt agreement for a US wind farm in three months.

Allianz Global Investors has provided the debt for a subsidiary of private equity firm DE Shaw to refinance its funding for an Oklahoma wind farm.

Allianz described in a statement the debt agreement for the 300MW Balko Wind project as a “back-leverage” loan that keeps in place the financing structure DE Shaw set up when it acquired the project in January 2015. This is the renewable energy deal Allianz has participated in with DE Shaw and its subsidiary, DE Shaw Renewable Energy Investments (DESRI).

The amount of the debt agreement was not disclosed.

“DESRI is in the forefront of renewable energy investing and our ability to provide financing solutions is a testament to Allianz’s growth in the market,” said Jorge Camina, Allianz’s infrastructure debt director. “This transaction is one of the few examples of institutional investors providing back-leverage financing to US utility-scale wind projects, a market traditionally served by commercial banks.”

DESRI first purchased the Balko project from Apex Clean Energy in January 2015 for an undisclosed amount. Financing for the acquisition and construction was provided by Santander Bank, Key Bank, Citi and Banco de Sadabell. Commitments for tax equity financing were provided by affiliates of Bank of America Merrill Lynch, General Electric, Google and Citi.

This is Allianz’s second debt agreement in the US wind market. Combined capacity for US wind projects the firm has financed now stands at 700MW, including $400 million for a Nebraska wind farm owned by Berkshire Hathaway in December.

Overall, Allianz’s infrastructure debt platform has committed $2.25 billion of investments to infrastructure assets in the US over a 20-month period.

Earlier this month, the equity arm of Allianz, Allianz Capital Partners, invested in a 225MW wind project in Oklahoma.