Legal & General has announced its first renewable energy transaction in continental Europe, after committing €120m to refinance one of Qualitas Energy’s solar photovoltaic portfolios in Spain.
LGIM Real Assets has committed the funding on behalf of LGAS in an investment which forms part of a total €324m transaction, with additional investment coming from another institutional investor.
Q-Energy’s 21 solar plants generate clean energy sufficient to supply thousands of homes and have been operating successfully for a decade.
The portfolio currently produces enough energy to supply over 70,400 households and avoid 75,400 tons of CO2 every year.
This investment highlights Legal & General’s persistent commitment to ESG, as it continues to establish itself as global leader in this space.
With Europe legally required to meet net zero carbon emissions by 2050 and have greenhouse gas emissions halved by 2030, investors must actively consider how they can help reduce emissions in some of the most carbon intensive industries – including real estate, energy, transportation and social infrastructure.
Legal & General says it is looking beyond current legislation and practices, seeking to align its real asset portfolio with a science-based carbon performance target covering the period to 2030.
Tom Sumpster, Head of Infrastructure Finance LGIM Real Assets, said: “This is a landmark transaction for LGIM Real Assets as our first renewable energy investment in continental Europe.
“As we actively continue to diversify our assets and increase our global exposure, this investment forms part of our strategic focus on responsible investing.
“The renewable energy sector has become increasingly attractive for our long-term investments due to its secure returns in conjunction with a wider ESG significance.
“Across Legal & General, we are taking a proactive approach to ESG and it is crucial that we continue to invest in strong performing assets, where we also see prospects to drive value and offer secure returns.”
And Daniel Parejo, Head of M&A and Financing at Q-Energy, said: “This is another major investment for us in the Spanish renewable energy sector and we are delighted to work with LGIM to strengthen our presence in this important and thriving sector.
“LGIM impressed us with their flexibility and thorough understanding of the market.”
LGIM Real Assets was an early leader in sustainable investment, making it a core objective for the business in 2008.
With the addition of this solar PV investment, LGIM Real Assets renewables portfolio now stands in excess of £1.1bn.