Quercus pays a coupon in the form of profit sharing, after two early repayments of capital, with the first green bond issued to invest in the development of permits to build photovoltaic plants.
Quercus Real Assets Limited (Quercus), the London-based company specializing in investments in the renewables and energy transition sector, has issued the first green bond for the development of permits aimed at building solar energy plants in 2021 through one of its Luxembourg investment vehicles. The bond matured on January 13, when Quercus paid the profit-sharing component after repaying the principal early in two tranches settled in the second half of 2023. The bond was issued with the aim of investing in the authorization process for solar photovoltaic projects in southern Europe. Quercus, as part of this investment strategy, has focused mainly on the Spanish market and has carried out one of the most significant transactions in the European solar sector from 2020 to date in terms of size through the development and sale of a portfolio of projects for over 800 MW, which, at current market values, requires a total investment of approximately 700 million euros to reach the operational phase. Diego Biasi, Co-Founder and President of Quercus, comments: “In a difficult climate both during and after COVID , we successfully launched this Green Bond to invest in the authorization process, which we consider an emblematic operation, and we repaid it before the natural maturity, in a relatively short period of time. Only those who are familiar with the development activity of projects in this sector and with the bond market can truly appreciate the challenge we have faced. We face the challenges with enthusiasm and have managed to overcome all the obstacles of a complicated economic period, particularly for our sector, and to make this project a great success. Among the major obstacles are the long delays and unexpected events of the administrative process as well as the overcrowding typical of this sector where the quality of investment opportunities, in fact, appears to be a rare commodity”. The bond was launched in a period in where interest rates were negative or close to zero, and a total return of 26% in less than three years shows a remarkable achievement. Quercus is expanding its development activities in several regions of Southern Europe as a first step towards creating of a new portfolio of solar plants operating in grid parity.”We don’t know exactly how many gigawatts we will build and manage between Italy, Spain and Greece in the near future, we have an initial target of three. It depends on how the market will develop and on the desirable further evolution of the regulatory framework in order to facilitate investments”, explains Diego Biasi. In addition to solar energy, Quercus is evaluating investments in other renewable energy market segments. Recently the company has added two senior managers with experience in the investment funds and renewable infrastructure construction sector to its workforce in Europe. Note to the editor About Quercus Real Assets: Quercus Real Assets Limited is a company specializing in investments in the renewable energy sector and of the energy transition, with offices in London and Dubai. Diego Biasi and Simone Borla founded Quercus with a first fund based in Luxembourg which has successfully completed over €1 billion in gross investments across five different successful strategies. In January 2020 , Diego Biasi has steered the Quercus business in response to the evolution of the energy sector towards a more diversified strategic investment approach. Since the birth of Quercus, over ten years ago, over 40 transactions of different nature have been successfully concluded, the The company’s strategy was based on the belief that creating value with attention to long-term ESG principles supports and strengthens investor and shareholder returns. Quercus is committed to developing business opportunities and supporting responsible investments for sustainable income and capital returns, while contributing to a zero-carbon future. For more information, please visit www.quercusrealassets.com
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