NatWest Executes £1.1 Billion Securitisation Deal to Boost Renewable Energy Lending

NatWest Executes £1.1 Billion Securitisation Deal to Boost Renewable Energy Lending

(IN BRIEF) NatWest has completed a £1.1 billion securitisation deal, backed by Nuveen Infrastructure and Christofferson Robb & Company, to increase its lending capacity in the renewable energy sector. The transaction, which provides credit protection for a portfolio of around 40 renewable energy projects, will enable NatWest to recycle capital and continue supporting the growth of renewable energy and energy transition initiatives. This move underscores NatWest’s commitment to its climate goals and its leadership in the renewable energy finance sector.

(PRESS RELEASE) LONDON, 14-Aug-2024 — /EuropaWire/ — NatWest has successfully executed a £1.1 billion securitisation deal as part of its strategy to expand lending in the renewable energy and energy transition sectors. The deal, supported by funding from Nuveen Infrastructure and Christofferson Robb & Company (CRC), enables NatWest to recycle capital, thereby enhancing its capacity to finance projects in these critical areas.

This transaction involves a synthetic risk transfer securitisation, which provides credit protection against a reference portfolio of approximately 40 renewable energy project finance loans. The portfolio includes a diverse range of renewable and energy transition projects, such as onshore and offshore wind, solar energy, smart meters, energy from waste, and biomass power.

The securitisation provides NatWest with Risk-Weighted Assets (RWA) relief, which the bank plans to reinvest into further lending within its renewable energy franchise. NatWest has been a prominent player in the energy project financing sector since 1991, consistently ranking as a leading lender in the UK power and renewables sector. According to InfraDeals data as of July 2024, NatWest was the top lender in the UK renewables sector from 2010 to 2024 in terms of volume arranged and the total number of transactions.

This deal marks one of several synthetic risk transfer (SRT) transactions NatWest has undertaken, and the second specifically referencing a portfolio of renewable technologies. The Project Finance and Portfolio Risk Mitigation teams at NatWest executed the transaction, with distribution handled by NatWest Markets.

Alberto Abascal, Managing Director of Project Finance at NatWest, emphasized the importance of this transaction: “Renewable lending is a core business for the Group. Given our market-leading position and stated climate purpose, this transaction is crucial for efficiently recycling our capital, allowing us to continue growing and supporting our clients with the significant volumes required in the sector.”

David Fitoussi, Managing Director and Head of European Origination at Christofferson Robb & Company, added: “CRC has been investing in European wind and solar since 2005. We respect NatWest as a leader in renewable energy project finance and are delighted to provide our investors with access to this portfolio, which they might otherwise find inaccessible.”

Claudio Vescovo, Head of Credit Funds – Energy Transition Europe at Nuveen Infrastructure, also commented: “We are pleased to invest in our fourth SRT transaction in the energy transition sector, adding a £1.1 billion portfolio of loans to our existing assets in enhanced credit strategies. This investment supports our ambition to offer investors opportunities in the energy transition while aiming to deliver sustainable and enhanced returns.”

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SOURCE: NatWest Group