Allianz Closes Proxy Revenue Swap for Invenergy’s Upstream Wind Farm

February 7, 2018

10-year Proxy Revenue Swap Hedge for Invenergy Upstream Wind Energy
Center in Antelope County, Nebraska, US, ensures stable revenues
despite uncertainty of intermittent wind resource
Allianz cooperates with Nephila and REsurety to provide innovative
financing solution

NEW YORK & CHICAGO–(BUSINESS WIRE)–Allianz Global Corporate & Specialty’s (AGCS)
alternative risk transfer unit (“Allianz”) has executed a 10-year Proxy
Revenue Swap with Invenergy, North America’s largest privately held
renewable energy company, for its Upstream Wind Energy Center,
protecting the new wind project’s revenues from the financial risks
associated with future energy prices and the uncertain volume and timing
of energy generation. The 202.5MW Upstream project, located in Antelope
County, Nebraska, expects to complete construction and begin producing
energy in the fourth quarter of 2018.

The Upstream transaction marks the fourth Proxy Revenue Swap to be
executed since the innovative hedging product was launched in 2016,
bringing the total of Proxy Revenue Swap-hedged wind project capacity to
nearly 700MW. As with prior Proxy Revenue Swap transactions, Nephila
Climate (“Nephila”) partnered with Allianz in managing the risks
associated with the transaction. REsurety, Inc. (“REsurety”) provided
the risk analytics used to support underwriting of the hedge prior to
its close, and will serve as the calculation agent on an ongoing basis.

“At Invenergy, we apply innovative thinking to not just development, but
also to financing of our clean energy projects. We’ve been considering
the Proxy Revenue Swap structure since it came to market, and saw a
great opportunity to apply this innovative new hedging structure to
Upstream. De-risking our future revenues with this hedging structure was
critical to securing the project’s financing,” said Jim Shield, EVP and
Chief Commercial Officer at Invenergy.

Allianz’s Managing Director Karsten Berlage added: “Allianz was
delighted to collaborate with the Invenergy team to help bring this
project to fruition. The Upstream transaction serves as further
confirmation of the value that wind projects see in the holistic revenue
risk management enabled by the Proxy Revenue Swap product.”

As North America’s largest privately held renewable energy company,
Invenergy and its affiliated companies develop, own, and operate
large-scale renewable and other clean energy generation and storage
facilities in the Americas and Europe.

Invenergy and its affiliated companies have developed more than 17,300
megawatts of projects that are in operation, construction or contracted,
including wind, solar, natural gas-fueled power generation and energy
storage projects.

Nephila is AGCS’s strategic partner in weather and climate-linked risk
management and works in collaboration with the corporate and specialty
insurer to manage the risk exposures of the Proxy Revenue Swap, as part
of a larger investment portfolio which includes other weather and
climate-linked risks across a range of industries from energy to
agriculture. “We are very pleased to have executed this hedge to help
Invenergy manage its revenue risk for the project, as further proof that
the leaders in renewable development see real value in this structure,”
said Richard Oduntan, CEO at Nephila Climate.

REsurety, Inc. is the leader in hedge underwriting and settlement
services for generation-linked risk management structures for the wind
industry. “The uncertainty of the weather as a fuel is an ever-growing
source of risk for the energy industry, and the Upstream transaction is
a terrific example of how the market is responding to that challenge
through the adoption of new risk management tools,” said Lee Taylor,
Co-Founder and CEO at REsurety.

About Allianz Global Corporate & Specialty

Allianz Global Corporate & Specialty (AGCS) is the Allianz Group's
dedicated carrier for corporate and specialty insurance business. AGCS
provides insurance and risk consultancy across the whole spectrum of
specialty, alternative risk transfer and corporate business: Marine,
Aviation (incl. Space), Energy, Engineering, Entertainment, Financial
Lines (incl. D&O), Liability, Mid-Corporate and Property insurance
(incl. International Insurance Programs).

Worldwide, AGCS operates in 32 countries with own units and in over 210
countries and territories through the Allianz Group network and
partners. In 2016, it employed around 5,000 people and provided
insurance solutions to more than three quarters of the Fortune Global
500 companies, writing a total of €7.6 billion gross premium worldwide
annually.

AGCS SE is rated AA by Standard & Poor’s and A+ by A.M. Best.

For more information please visit www.agcs.allianz.com
or follow us on Twitter @AGCS_Insurance
LinkedIn
and Google+.

About Invenergy

Invenergy drives innovation in energy. Invenergy and its affiliated
companies develop, own, and operate large-scale renewable and other
clean energy generation and storage facilities in the Americas and
Europe. Invenergy's home office is located in Chicago and it has
regional development offices in the United States, Canada, Mexico, Japan
and Europe.

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Contacts

Allianz Global Corporate & Specialty:
Sabrina Glavan,
+1-646-472-1510
Media Relations AGCS North America
[email protected]
or
Invenergy:
Mary
Ryan, +1-312-582-1424
Senior Manager, Communications
[email protected]

Allianz Closes Proxy Revenue Swap for Invenergy’s Upstream Wind Farm

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