Advising EIB and EIF on market first public solar securitization in Europe

The asset-backed securities (ABS) transaction has a total volume of EUR 240 million and is secured by a portfolio of around 8,500 solar financings originated by Enpal for German homeowners.

The European Investment Bank (EIB) together with its subsidiary, the European Investment Fund (EIF), has backed German energy company Enpal in creating Europe's first public solar securitization, worth EUR100m. With the EIB Group's participation, German green tech unicorn Enpal will refinance residential solar financings offered to customers buying renewable energy solutions. The securitization was issued by the Luxembourg-based SPV "Golden Ray - 1" and was structured in line with the Green Bond Principles of the International Capital Market Association (ICMA).

In this transaction, the EIB acted as an anchor investor with EUR50m in the senior class A2 tranche, while the EIF provided an embedded guarantee of an additional EUR50m on the senior class A1 tranche. This embedded guarantee effectively transforms the underlying class 1 notes into a quasi European Safe Asset rated AAA, offering enhanced liquidity and transferability.

The innovative transaction establishes a new securitization asset class in Europe, fostering the EU’s Capital Markets Union for securitizations.

The A&O Shearman team was led by partner Dr. Stefan Henkelmann and comprised furthermore counsels  Jens Nollmann and Dr. Daniela Schmitt as well as associates Florian Seck and Johanna Ribbe (all Global Financial Makets), partner Dr. Heike Weber, associate Niklas Kniess (both Tax, all Frankfurt), partner Paul Péporté, associate Max Sassel (both Capital Markets), partner Franz Kerger and associate Catherine Elvinger (both Tax, all Luxembourg).