UPDATE - Insurer Talanx buys EUR 320m of offshore wind bond

German insurance group Talanx AG (ETR:TLX) is subscribing for as much as EUR 320 million (USD 358m) of an offshore wind-related bond as part of a plan to expand its exposure to infrastructure investments.

The insurer arranged the EUR-556-million bond, with a term of 10 years, to finance Global Infrastructure Partners’ (GIP’s) acquisition of a 50% stake in the 330 MW Gode Wind 1 offshore wind project. Danish utility Dong Energy A/S, which is selling the stake, said earlier today the consideration will amount to EUR 780 million.

Talanx said the bond represents the first time a group of institutional investors led by an insurer has financed an offshore wind project, adding that the investors include German insurance companies and asset managers.

The German insurance company explained that it is growing its exposure to infrastructure investments in a bid to compensate for the decrease in yields due to low interest rates. Talanx aims to invest as much as EUR 2 billion in infrastructure projects in the medium term.

“In the long term we could potentially invest up to EUR 5 billion in a broadly diversified range of alternative investments,” said CFO Immo Querner.

The EUR-556-million bond will be issued only after the GIP acquisition has been given the green light by competition authorities. A decision is expected by the end of this month.

(EUR 1 = USD 1.119)

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