Press releases

Legal & General completes first UK offshore wind investment

Legal & General announces that it has provided close to £300m of long-term acquisition debt in support of Danish pension funds, PKA and PFA consortium’s approx £2bn purchase of 50% of Walney Extension from Ørsted (the former Dong Energy).

20 Nov 2017


Walney Extension, which is currently under construction, will be the world’s largest offshore wind farm with a capacity of 660 megawatt (MW), providing enough power for over 590,000 homes.

LGIM Real Assets was an anchor investor, structuring and providing both commercial debt and Export Credit Agency (ECA) wrapped debt on this transaction. The acquisition represents Legal & General’s first debt investment into UK offshore wind sector and its second largest infrastructure debt investment, after the £400m London Gateway Port refinancing in 2016. The deal was financed by LGIM Real Assets on behalf of their clients, including Legal & General Retirement (LGR). LGR was the principal investor for LGIM Real Assets on this transaction, providing £250M of the circa £300M of long-term acquisition debt.

The Walney Extension offshore wind farm will be located in the Irish Sea, around 19 km west of the Walney Island coast in Cumbria. Approximately £1 Million per month was contributed to the local economy during the construction of Walney I and II. It is also estimated that for the Walney Extension Project, Ørsted could support up to 185 full-time jobs annually throughout the estimated 25 year operational lifespan.

Charles-Henry Lecointe, Senior Investment Manager, LGIM Real Assets, said:  “This deal represents our first offshore wind investment for LGIM clients. We have a strong appetite for future investments into this sector as well as other renewable sectors, recognising the importance the offshore wind industry can have for providing clean energy and stimulating job growth in the UK. Legal & General continues to be committed to investing in key UK infrastructure assets which will have a major impact on stimulating economic growth while ensuring long-term cash flow for pension funds.” 
Kerrigan Procter, Chief Executive Officer, Legal & General Retirement, said:  “Offshore wind is a growing industry in the UK, and we are very pleased to have completed our first investment with one of the most experienced and respected names in the industry. It is a great investment fit for us as it enables us to fulfil pension promises to our customers in an efficient way, whilst playing a part in driving job creation and economic growth, which is good for business as well as our customers.” 

Further information

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Olivia Bayliss

Head of Communications

Capital and LGIM Real Assets

Notes to editors

Legal & General Investment Management Real Assets (LGIMRA) is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £1.28tn in assets (as at 31 December 2020), working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

LGIM Real Assets has assets under management of £36.3bn (as at 31 December 2020) and is one of the largest private markets investment managers in the UK. Investing in both debt and equity and across the risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt.

Taking a long term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level. In 2021, we are implementing a strategy as part of our commitment to net zero carbon emissions across the real estate equity business by 2050, and have also committed to measuring social value across 20% of our platform by the end of the year.

(As of June 2021)

IMPORTANT INFORMATION

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.

Legal & General Retirement Institutional (LGRI) works with trustees and sponsoring companies of defined benefit (DB) pension schemes of all sizes to settle their pension obligations and secure scheme members’ benefits, through a full range of buy-ins, buyouts and other de-risking solutions.

Our UK Retirement annuity book stands at over £85 billion as at 30 June 2021, of which over £25 billion is invested in direct investments that deliver positive social and environmental impacts, such as clean energy and affordable housing.

Our Client Services’ 12-month rolling Net Promoter Score (NPS) is above +70, which is widely regarded as being at a “world class” level.

(As of June 2021)

Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.

* at 30 June 2021