Huge Nebraska wind farm gets USD 400m thanks to AllianzGI

Wind turbines at work. Author: Nick Cross. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

Allianz Global Investors (AllianzGI) has made, on behalf of clients, an investment of more than USD 400 million (EUR 384m) in a 400-MW wind project in Nebraska owned by Warren Buffett.

The investment manager, part of Germany’s Allianz SE (ETR:ALV), announced the investment in the Grande Prairie Wind project on Wednesday, saying this marks its first infrastructure debt renewable energy investment in the US. The financing comprises 20-year unlisted bonds privately placed with US and European investors via AllianzGI’s infrastructure debt platform.

BHE Renewables, a unit of Warren Buffett's Berkshire Hathaway Energy, will use the amount to reimburse the costs related to the wind farm’s construction. Work at the site in Holt County started in 2015 and the park will be completed very soon. It has a power purchase agreement (PPA) with Omaha Public Power District.

“BHE Renewables was able to tailor the structure to their goals and close the financing under an expedited timetable through a one-stop-shop funding solution that matches the investment mandate of our long-term infrastructure investor-clients in the pensions and life Insurance industries,” said Paul David, head of Americas, infrastructure debt at AllianzGI.

The Grande Prairie Wind project was developed by US renewables firm Geronimo Energy LLC and sold to BHE Renewables, alongside other wind and solar assets, last year. Vestas Wind Systems A/S (CPH:VWS) is the turbine supplier.