Allianz Global Investors has provided a $400 million debt investment to a wind project in Nebraska that will soon begin operations.
The investment, Allianz’s first infrastructure debt deal for renewable energy in the US market, is for the 400MW Grand Prairie Wind project in Holt County, Nebraska. BHE Renewables, a subsidiary of Berkshire Hathaway Energy, is expected to reach commercial operation by the end of this year.
Allianz financed the deal using a private placement of 20-year unlisted bonds with US and European investors through its already established infrastructure debt platform.
The close of this deal puts investments in US infrastructure assets from Allianz’s infrastructure debt platform at $2 billion over the last 18 months.
According to a statement, Grand Prairie Wind is BHE Renewables’ first project in Nebraska and will increase the state’s wind energy capacity by 50 percent. The project has a long-term power-purchase agreement with Omaha Public Power District. BHE Renewables will use the proceeds of the deal to reimburse the costs of construction that began in 2015 and will be completed by the end of this year.
The Grand Prairie Wind project is “an excellent showcase of how Allianz can deliver value-added solutions to infrastructure sponsors through its established institutional platform”, said Allianz’s head of infrastructure debt in the Americas, Paul David.
Other notable deals Allianz has been a part of recently include a $700 million commitment to the Indiana Toll Road in May 2015, and participated in the Chicago Skyway and Long Beach Civic Center public-private partnership deals. It has invested $8.9 billion in US and European infrastructure since 2013.