General Insurance Article - Phoenix invests GBP27m in renewable energy project

 Phoenix has agreed to provide debt-financing for the acquisition of a 50 per cent share in the Walney Extension Offshore Wind Farm Project, jointly owned by green energy company, Orsted (formerly Dong Energy) and Danish pension funds, PKA and PFA. The tranche of the bond Phoenix invested in is additionally guaranteed by EKF, Denmark’s Export Credit Agency.

 This is the first investment in renewable energy for Phoenix, which has sought to diversify its investment portfolio. The Walney Extension Project will provide clean energy to a large number of UK homes. The extended wind farm will be operational from September 2018.

 Phoenix Group’s Head of Financial Management Group, Scott Robertson said, “In the last 12 months Phoenix has continued to diversify our investment portfolio with such long-term investments in renewable energy, Local Authorities including Birmingham City Council and Equity Release Mortgages. From a Phoenix perspective, these investments provide a highly predictable and secure stream of long-term cash-flows to match our pensioner liabilities.”

 “This investment marks an important first step for us in renewable energy and it particularly suits our ambitions. We hope to see further projects of this nature in the future”.