Aviva Investors provides financing for acquisition of Hornsea Two offshore transmission assets

3 August 2023

(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has agreed to provide financing for the acquisition of offshore transmission assets at Hornsea Two offshore wind farm by Diamond Transmission Partners, a joint venture comprising Diamond Transmission UK Limited and HICL Infrastructure PLC.

The investment was completed on behalf of Aviva UK Life’s annuity business, and cements Aviva Investors’ position as the second-largest non-bank provider of infrastructure debt financing in Europe1

Located 90km off the Yorkshire coast, Hornsea Two windfarm consists of 165 Siemens Gamesa 8MW turbines with a total installed capacity of 1.3GW. This is the third transaction where Aviva Investors has provided debt financing to Diamond Transmission Partners, having supported its purchases of offshore transmission operator assets (“OFTOs”) at both Hornsea One and Galloper windfarms in 2021 and 2020 respectively.

Aviva Investors has now provided approximately £1.7 billion of financing towards renewable energy infrastructure projects, representing a total generation capacity of around 5.5GW.

Sinéad Walshe, Director, Infrastructure Debt, at Aviva Investors, said:

“We are really pleased to get this investment over the line and to continue supporting investment into the UK’s offshore wind market. It is also great to extend our relationship with Diamond Transmission Partners, a market leader in the OFTO market.  Hornsea Two is a particularly attractive investment opportunity for UK Life as it provides long-term income streams which reflect its sustainability values and ambitions, whilst also delivering stable index-linked cashflows, making it particularly attractive in the current inflationary environment.”

Marcus Mollan, Director, Annuity Asset Origination, at Aviva UK Life, added:

“Well over a million homes are powered by the renewable energy from Hornsea Two wind farm.  Aviva’s annuity business is delighted to be financing this transaction, our most recent offshore wind investment.  With investments like these, we are directing the premiums of our individual and bulk purchase annuity customers into long-term sustainable assets that will contribute to achieving both Aviva’s, and the UK’s, net zero ambitions.”

 

1 Inframation Lenders League Table, July 2023

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Aviva Investors

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with £223 billion in assets under management as at 31 December 2022.

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