Old Settler Wind, jointly owned by Apex Clean Energy and Northleaf Capital Partners, has executed a 10-year proxy revenue swap with Allianz Risk Transfer (Bermuda) Ltd. (ART Bermuda).
The proxy revenue swap was created and commercialized through a collaboration among ART Bermuda, Nephila Capital Ltd., REsurety Inc. and Altenex LLC.
Old Settler Wind – a 151.2 MW facility in Floyd County, Texas – is part of a 217 MW portfolio that also includes Cotton Plains Wind and Phantom Solar (the debt financing and tax equity commitments for which were announced on July 14). The portfolio of projects is expected to achieve commercial operation in the first quarter of 2017.
According to Apex, the proxy revenue swap will secure long-term predictable revenues and mitigate the energy generation volume uncertainty related to the weather.
Nephila Capital is ART’s strategic partner in weather risk management and works in collaboration with ART to manage and transfer risk exposures associated with the proxy revenue swap on behalf of its investors. REsurety provides the risk analytics that enable the structuring and pricing of the proxy revenue swap and serves as the independent calculation agent for such transactions.
“This transaction validates our thesis behind the proxy revenue swap – that it enables best-in-class financing options for wind projects through a unique and holistic approach to managing revenue risks,” says Karsten Berlage, managing director of ART Inc.