News & Press Releases
Allianz Risk Transfer and Apex Clean Energy Close Proxy Revenue Swap for Old Settler Wind Farm
New York & Charlottesville, July 25, 2016 – Old Settler Wind, jointly owned by Apex Clean Energy (“Apex”) and Northleaf Capital Partners, has executed a 10-year proxy revenue swap with Allianz Risk Transfer (Bermuda) Limited (“ART Bermuda”) that will secure long-term predictable revenues and mitigate the energy generation volume uncertainty related to the weather as a fuel resource.
The proxy revenue swap, an innovative new risk management tool for the wind power industry, was created and commercialized through a collaboration among ART Bermuda, Nephila Capital Limited (Nephila Capital), REsurety, Inc. (REsurety), and Altenex, LLC (Altenex). This transaction represents the second 10-year proxy revenue swap to be sold, and the first to rely on the hedge to secure third-party commercial financing.
“Apex is pleased to have successfully closed the financing on this innovative revenue product, providing a new resource to further accelerate our nation’s shift to clean energy,” said Mark Goodwin, president of Apex.
“This transaction validates our thesis behind the proxy revenue swap—that it enables best-in-class financing options for wind projects through a unique and holistic approach to managing revenue risks,” said Karsten Berlage, managing director of ART Inc.
Old Settler Wind is a 151.2 MW facility in Floyd County, Texas, that will generate enough clean electricity to power 51,000 average U.S. homes. The project is part of a 217 MW portfolio that also includes Cotton Plains Wind and Phantom Solar, the debt financing and tax equity commitments for which were announced on July 14, 2016. The portfolio of projects is expected to achieve commercial operation in the first quarter of 2017.
Nephila Capital is ART’s strategic partner in weather risk management and works in collaboration with ART to manage and transfer risk exposures associated with the proxy revenue swap on behalf of its investors.
REsurety provides the risk analytics that enable the structuring and pricing of the proxy revenue swap and serves as the independent calculation agent for such transactions.
Sabrina J. Glavan
Allianz Global Corporate & Specialty
646 472 1510
Harden Communications Partners
631 239 6903
About Apex Clean Energy
Apex Clean Energy builds, owns, and operates utility-scale wind and solar power facilities. Last year, Apex completed 1,042 megawatts of new wind capacity, enough clean energy to supply the population of a city the size of Boston or San Francisco each year for the life of the facilities. With a team of over 200 professionals and the nation’s largest wind energy project pipeline, Apex is a leader in the transition to a clean energy future.
About Allianz Risk Transfer
Allianz Risk Transfer AG (ART AG) is the center of competence for alternative risk transfer business within the Allianz Group offering tailor-made insurance, reinsurance and other non-traditional risk management solutions to industrial and financial clients worldwide. Founded in June 1997, the company is a wholly-owned subsidiary of Allianz Global Corporate & Specialty SE. ART Group operates through affiliated companies with offices in Amsterdam, Bermuda, Dubai, London, New York and Zurich. Its client base spans across all industry sectors and its solutions are most effective for clients facing unusual or complex risks, where traditional (re)insurance or financial products are inadequate. As of today, ART AG is rated by AA- by Standard & Poor’s and A+ by A.M. Best.
About Nephila Capital Limited
Nephila Capital Ltd is a leading investment manager specializing in reinsurance and weather risk. Nephila has assets under management of approximately $10 billion and has been managing institutional assets in this space since it was founded in 1998. The firm has over 100 employees globally based in Bermuda (headquarters), San Francisco, CA, Nashville, TN and London.
About REsurety, Inc.
REsurety is the leading volumetric risk analysis firm enabling the accurate quantification and efficient transfer of weather-linked revenue risks for renewable energy. REsurety’s proprietary software and analytics support transactions for the world’s leading risk market counterparties.
About Altenex, LLC
Altenex is the leading energy management network that Fortune 500 companies, colleges, universities and municipalities use to source clean energy for their power portfolios. Altenex’s analytics and market-making services for the direct contracting of renewable power enable best-in-class management of price-linked risk exposures for consumers of clean power.