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Allianz Closes Proxy Revenue Swap for Invenergy's Upstream Wind Farm
[February 07, 2018]

Allianz Closes Proxy Revenue Swap for Invenergy's Upstream Wind Farm


Allianz Global Corporate & Specialty's (AGCS) alternative risk transfer unit ("Allianz") has executed a 10-year Proxy Revenue Swap with Invenergy, North America's largest privately held renewable energy company, for its Upstream Wind Energy Center, protecting the new wind project's revenues from the financial risks associated with future energy prices and the uncertain volume and timing of energy generation. The 202.5MW Upstream project, located in Antelope County, Nebraska, expects to complete construction and begin producing energy in the fourth quarter of 2018.

The Upstream transaction marks the fourth Proxy Revenue Swap to be executed since the innovative hedging product was launched in 2016, bringing the total of Proxy Revenue Swap-hedged wind project capacity to nearly 700MW. As with prior Proxy Revenue Swap transactions, Nephila Climate ("Nephila") partnered with Allianz in managing the risks associated with the transaction. REsurety, Inc. ("REsurety") provided the risk analytics used to support underwriting of the hedge prior to its close, and will serve as the calculation agent on an ongoing basis.

"At Invenergy, we apply innovative thinking to not just development, but also to financing of our clean energy projects. We've been considering the Proxy Revenue Swap structure since it came to market, and saw a great opportunity to apply this innovative new hedging structure to Upstream. De-risking our future revenues with this hedging structure was critical to securing the project's financing," said Jim Shield, EVP and Chief Commercial Officer at Invenergy.

Allianz's Managing Director Karsten Berlage added: "Allianz was delighted to collaborate with the Invenergy team to help bring this project to fruition. The Upstream transaction serves as further confirmation of the value that wind projects see in the holistic revenue risk management enabled by the Proxy Revenue Swap product."

As North America's largest privately held renewable energy company, Invenergy and its affiliated companies develop, own, and operate large-scale renewable and other clean energy generation and storage facilities in the Americas and Europe.

Invenergy and its affiliated companies have developed more than 17,300 megawatts of projects that are in operation, construction or contracted, including wind, solar, natural gas-fueled power generation and energy storage projects.

Allianz Global Corporate & Specialty (AGCS) is the Allianz Group's dedicated carrier for corporate and specialty insurance business. AGCS provides insurance and risk consultancy across the whole spectrum of specialty, alternative risk transfer and corporate business.

Nephila is AGCS's strategic partner in weather and climate-linked risk management and works in collaboration with the corporate and specialty insurer to manage the risk exposures of the Proxy Revenue Swap, as part of a larger investment portfolio which includes other weather and climate-linked risks across a range of industries from energy to agriculture."We are very pleased to have executed this hedge to help Invenergy manage its revenue risk for the project, as further proof that the leaders in renewable development see real value in this structure," said Richard Oduntan, CEO at Nephila Climate.



REsurety, Inc. is the leader in hedge underwriting and settlement services for generation-linked risk management structures for the wind industry. "The uncertainty of the weather as a fuel is an ever-growing source of risk for the energy industry, and the Upstream transaction is a terrific example of how the market is responding to that challenge through the adoption of new risk management tools," said Lee Taylor, Co-Founder and CEO at REsurety.

About Allianz Global Corporate & Specialty


Allianz Global Corporate & Specialty (AGCS) is the Allianz Group's dedicated carrier for corporate and specialty insurance business. AGCS provides insurance and risk consultancy across the whole spectrum of specialty, alternative risk transfer and corporate business: Marine, Aviation (incl. Space), Energy, Engineering, Entertainment, Financial Lines (incl. D&O), Liability, Mid-Corporate and Property insurance (incl. International Insurance Programs).

Worldwide, AGCS operates in 32 countries with own units and in over 210 countries and territories through the Allianz Group network and partners. In 2016, it employed around 5,000 people and provided insurance solutions to more than three quarters of the Fortune Global 500 companies, writing a total of €7.6 billion gross premium worldwide annually.

AGCS SE is rated AA by Standard & Poor's and A+ by A.M. Best.

For more information please visit www.agcs.allianz.com or follow us on Twitter (News - Alert) @AGCS_Insurance LinkedIn and Google+.

About Invenergy

Invenergy drives innovation in energy. Invenergy and its affiliated companies develop, own, and operate large-scale renewable and other clean energy generation and storage facilities in the Americas and Europe. Invenergy's home office is located in Chicago and it has regional development offices in the United States, Canada, Mexico, Japan and Europe.

Invenergy and its affiliated companies have developed more than 17,300 megawatts of projects that are in operation, construction or contracted, including wind, solar, natural gas-fueled power generation and energy storage projects. For more information, please visit www.invenergyllc.com.

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements.

Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group's core business and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

The matters discussed herein may also be affected by risks and uncertainties described from time to time in Allianz SE's filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statement.


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