Talanx co-invests in Irish PPP project with MUFG
Talanx, the European insurance group is financing the construction, refurbishment and maintenance of seven court buildings in Ireland through its public-private partnership (PPP) project, Courts Bundle PPP.
The insurance group is participating as a co-investor with a volume of around €73 million in the construction, refurbishment and maintenance of seven court buildings in Ireland along with The Bank of Tokyo-Mitsubishi UFJ (MUFG) which also contributed an investment in the amount of some €73 million as well as short-term facilities.
"As a long-term investor, Talanx is the ideal partner for projects like PPPs that traditionally run for long periods", says Dr Thomas Mann, chief investment officer at Talanx Asset Management.
"With this investment, we are once again displaying our expertise in participating in the structuring and implementation of large-volume transactions and once again tapping into returns that appreciably outstrip the current interest rate on 30-year German government bonds."
The Courts Bundle project of the Irish National Development Finance Agency (NDFA) and the Dutch BAM PPP is Talanx' first investment in a PPP project. The financing has a term of 26.5 years.
This is Talanx' second external funding investment in the area of infrastructure. In September 2015, Talanx, acting as consortium manager for several institutional investors, arranged financing for the offshore wind farm, Gode Wind 1. For this, the insurer coordinated a bond with a volume of €556 million. Talanx subscribed to about €300 million of the 10-year bond.
