German insurance group Talanx announced today that it is financing two solar power projects in Spain, through a €250 million credit insured project bond. The investment marks the firm’s seventh solar power financing, and adds to the group’s overall investment in environmentally friendly power generation from wind and solar farms, which including other infrastructure projects totalled €2.5 billion at the end of 2019.

The financing deal announced today will go towards funding two plants in Spain’s Castilla-La Mancha region, which will provide 52,000 households with green electricity, resulting in annual carbon emissions savings of almost 63,000 tonnes.

To date, Talanx’s solar investments have focused on funding photovoltaic plants. The new plants being financed through the new investment, however, are based on concentrated solar power (CSP) technology, which uses arrays of parabolic mirrors to reflect sunlight and concentrate it onto tubes containing a heat transfer fluid, with the heat produced used to generate steam, which in turn powers a steam turbine to generate electricity.

Peter Brodehser, Head of Infrastructure Investments at Talanx, said:

“We are delighted to put in place the first private credit insured project bond for a CSP project. This is yet another example of working together with long-term partners. Combining entrepreneurship and a pioneering spirit has allowed us to make another attractive investment as part of the Group’s sustainability strategy.”

According to Talanx, S&P has awarded the project bond a private rating of AA. The bond is fully amortizing and has an average term of less than 10 years and a coupon of 1.9 percent.