The European Investment Fund (EIF) has joined forces with Alter5, a leading Spanish financial technology company active in the sustainable alternative investment sector, to facilitate access to capital markets for renewable energy developers.
The EIF will grant a guarantee of up to €105 million to Alter5 to cover a portfolio of green loans of €150 million to finance the development and construction of renewable energy projects mainly located in Spain. Alter5 provides investors with a single technology platform to originate, validate, invest and manage their investments. The company is creating a digital process to simplify access to debt investments in sustainable assets.
The platform allows for the creation of tailored financing programmes for developers with large pipelines and specific solutions to address the financing needs of small developers operating in the energy sector. The financing provided to the beneficiaries will be funded via the issuance of green bonds purchased by institutional investors using a single vehicle and a standard documentation package.
Alter5 has engaged Bestinver Securities as the green energy bond structuring and placement agent. Bestinver is working with leading Spanish and European institutions, including pension funds, insurance companies and fixed income managers, to define the entities participating in the initial issuances.
This agreement between Alter5 and the EIF is backed by the Pan-European Guarantee Fund, part of the European Union's €540 billion package to address the economic impact of COVID-19.
We are delighted to back Alter5, one of the first fintech companies we have partnered with under the Pan-European Guarantee Fund (EGF). Small and medium-sized businesses are the drivers of the European economy and backing their investment needs is the key priority for the European Investment Fund.”
A key mission of the EIB Group is to support sustainable investments and this agreement demonstrates our strong commitment to promoting a green economic recovery, through innovative financial solutions. We must ensure that every cent spent on the recovery protects the climate and the environment and improves our quality of life.”
For Miguel Solana, founding partner of Alter5, "the partnership with the EIF is a fundamental step in the creation of new financing solutions for sustainable assets and projects; the guarantee will mobilise capital beyond traditional bank sources; by combining technology and efficient financial solutions, Alter5 can play a key role in the transformation of the sector, accelerating the energy transition in the EU."
According to Aitor Elustondo, head of Debt Advisory at Bestinver Securities, “Over the last few months, we have been working with a variety of institutions in the design of the programme, intending to carry out the first issuance in the first quarter of 2022. The agreement broadens the investment spectrum to Spanish and European investors that have already shown an explicit interest on the programme.”
The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe's small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.
The European Guarantee Fund (EGF) was created by the EIB Group with contributions from all 27 EU Member States to protect companies that are struggling in the crisis caused by COVID-19. With almost €25 billion in guarantees, the EGF allows the EIB and EIF to swiftly offer companies, mostly SMEs and mid-caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the European Union, with the objective of providing a total of €540 billion to support the hardest hit sectors of the EU economy.
Alter5 is a financial technology platform that provides direct access to a wide range of curated sustainable investments in a digital environment. Institutional investors can easily invest in and build diversified portfolios of sustainable alternative assets with a broad mix of risk-return profiles.
Bestinver Securities is an independent investment advisor that assesses corporates and financial institutions on growth transactions, a wide range of financing strategies, balance sheet optimisation, restructuring and other corporate finance solutions.