Allen & Overy advises Glennmont on landmark EUR1.3 billion green synthetic securitisation

The synthetic securitisation involves a EUR1.3 billion pan-European portfolio of renewable energy loans relating to wind, solar and biomass projects having an overall installed capacity of approximately 7.2GW.

The transaction constitutes the largest green synthetic securitisation in Europe and UK to date and it follows the first-of-its-kind GBP1.1bn synthetic securitisation referencing a portfolio of UK renewables on which Allen & Overy advised NatWest Bank and NatWest Markets in 2020.

Glennmont Partners has acted with a team led by Claudio Vescovo, Managing Director and Head of Green Credit Fund, with the support of manager Alberto Treglia, senior associate Alexandre Cary and associate Kevin Yassine. Allen & Overy has assisted Glennmont Partners with an Italian team comprising partner Stefano Sennhauser, counsel Pietro Bellone, associates Martina Gullino and Chiara D’Andolfo and trainee Chiara Righetti and a UK team led by partner Parya Badie and senior associate Robert Simmons.

The due diligence on the underlying projects has been carried out by counsel Luca Amicarelli with associates Roberta Errico and Stefania Casini and trainee Flavia Frascati. A group of lawyers coordinated by partners Driss Berheri and Romaric Lazerges of Paris office, partner Stefan Henkelmann and counsel Udo Herbert Olgemoeller of Frankfurt office, partners Ignacio Ruiz-Camara and Santiago De Vicente of Madrid office and Sylvia Kierszenbaum of Antwerp office have provided support in relation to the due diligence on the French, German, Spanish and Belgium assets.

Parya Badie, partner, commented: “Capital relief transaction in ESG portfolios like this one offer banks a flexible tool to achieve significant risk transfer while affording investors an opportunity to participate economically in much sought after assets. We are proud to be at the forefront of this type of legal work and to have worked on the first green synthetic securitisations. These transactions are significant and I have no doubt that there will continue to be a growing appetite for ESG investments”.

Pietro Bellone, counsel, added: “Working on this innovative transaction has been extremely rewarding for us as it has permitted to showcase the breadth and sophistication of our global capital relief practice, which couples international expertise with deep local knowledge”.