NatWest has executed a £1.1bn own-asset securitisation deal with funding from Nuveen Infrastructure and Christofferson Robb & Company to allow the bank to recycle capital and increase lending to the renewable energy and energy transition sectors.
The synthetic risk transfer securitization “provides credit protection against a reference portfolio of ~40 renewable energy project finance loans.”
The portfolio includes loans to the renewables and energy transition sector, “including onshore and offshore wind, solar, smart meters, energy from waste, and biomass power.”
The transaction provides RWA relief “for the group which will be redeployed into further lending to clients across the renewable energy franchise.”
NatWest has a long track record in the financing energy projects “since 1991 and remains a leading lender to the UK power and renewables sector with depth and breadth of experience across all technologies.”
NatWest was reportedly the leading lender to the UK renewables sector “by volume arranged and total number of transactions between 2010 and 2024, according to InfraDeals (as at 4th July 2024).”
The transaction represents one of a number of synthetic SRT transactions “for NatWest and the second referencing a portfolio of renewable technologies.”
The transaction was executed “by NatWest’s Project Finance and Portfolio Risk Mitigation teams, and distributed by NatWest Markets.”
Alberto Abascal, Managing Director – Project Finance, NatWest said:
“Renewable lending is a core business for the Group. Given our market leading position and stated climate purpose, this is an important transaction to help the business efficiently recycle our capital to allow us to continue to grow and support our clients with the significant volumes required in the sector.”
David Fitoussi, Managing Director – Head of European Origination, Christofferson Robb & Company said:
“CRC has invested in European wind and solar since 2005. We respect NatWest as a renewable energy project finance lender and are delighted to bring this exposure to this portfolio to our investors, which they would otherwise find inaccessible.”
Claudio Vescovo, Head of Credit Funds – Energy Transition Europe, Nuveen Infrastructure said:
“We are pleased to have invested in our already 4th SRT transaction in the energy transition, adding a £1.1bn portfolio of loans to the existing assets in our enhanced credit strategies. The investment continues to support our ambitions to offer investors the chance to participate in the energy transition whilst aiming to deliver sustainable and enhanced returns.”
