With the world turning its attention to renewable energy sources, it's no wonder that capital market investors are keen to get in on the action. For some, the motivation has been the better yields that come with an untested product, while for others, the political statement behind the investment is too hard to resist.
"It's the topic of the times," said Fabian Poetter, a structurer on the new issues team at Munich-based UniCredit Markets & Investment Banking. "We receive calls everyday during the structuring phase of our deal." Poetter is referring to the several deals the team has completed under its Breeze transaction series. The group this month closed the third transaction within this series, which is continuing to attract a growing investor base. The latest Breeze deal covers 206 wind power plants in Germany and France, with a total capacity of roughly 350 megawatts. It is highly diversified in terms of the plant location, the number of wind park developers and the turbine types employed. Tranches A and B are rated by Moody's Investors Service, Standard & Poor's and Fitch Ratings. The tranche C first-loss piece is unrated. Tranche A has been provided with additional insurance by MBIA, resulting in a rating upgrade to AAA'/AAA'/AAA.'