Sanne: the EIF and Alter5 finance renewable energy projects via a digital green bond program

• Alter5 will mobilize institutional capital and expand access to the capital market for renewable energy projects and developers through its Luxembourg-based green bond platform.
• Alter5 is one of the first fintech companies in Europe and the first in Spain to work with the EIF by signing a guarantee under the Pan-European Guarantee Fund (FEM).

The European Investment Fund (EIF) has partnered with Alter5, a leading Spanish financial technology company active in the sustainable alternative investment sector, to facilitate access to capital markets for energy developers renewable.

The EIF will provide a guarantee of up to 105 million euros to Alter5 to cover a portfolio of green loans of 150 million euros intended to finance the development and construction of renewable energy projects mainly located in Spain. Alter5 provides investors with a unique technology platform to create, validate, invest and manage their investments. The company is creating a digital process to simplify access to debt investments in durable assets.

The platform enables the creation of tailor-made financing programs for developers with large pipelines and specific solutions to meet the financing needs of small developers operating in the energy sector. Funding to beneficiaries will be funded through the issuance of green bonds purchased by institutional investors using a single vehicle and standard documentation.

Alter5 has hired Bestinver Securities as a structuring and placement agent for green energy bonds. Bestinver works with leading Spanish and European institutions, including pension funds, insurance companies and fixed income managers, to define the entities participating in the initial issues.

This agreement between Alter5 and the EIF is supported by the Pan-European Guarantee Fund, which is part of the European Union’s € 540 billion program to tackle the economic impact of COVID-19.

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 mobilize capital beyond traditional banking sources; By combining technology and efficient financial solutions, Alter5 can play a key role in transforming the sector, accelerating the energy transition in the EU. ”

According to Aitor Elustondo, head of debt advice at Bestinver Securities, “Over the past few months, we have worked with various institutions in designing the program, with the intention of carrying out the first issue in the first quarter of 2022. The agreement expands the investment spectrum to Spanish and European investors who have already expressed an explicit interest in the program. ”