UK asset management firm LGIM Real Assets, part of the Legal & General group, has committed €120m ($130m) to the refinancing of one of Qualitas Energy’s solar photovoltaic portfolios consisting of 21 operational assets across Spain.

The investment represents Legal & General’s first renewable energy transaction in continental Europe, seeing Legal & General partner with Qualitas Energy, a leading asset manager within the Spanish renewables market.

The investment forms part of a total €342m transaction.

With Europe legally required to meet net-zero carbon emissions by 2050 and have greenhouse gas emissions halved by 2030, investors must actively consider how they can help reduce emissions in some of the most carbon-intensive industries; including real estate, energy, transportation and social infrastructure.

Based on this trend, Legal & General is seeking to align its real asset portfolio with a science-based carbon performance target covering the period to 2030.

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With the addition of this solar PV investment, LGIM Real Assets renewables portfolio now stands in excess of £1.1bn ($1.3bn), enhancing the group’s extensive renewables portfolio.

Tom Sumpster, head of infrastructure finance at LGIM Real Assets, said: “This is a landmark transaction for LGIM Real Assets as our first renewable energy investment in continental Europe. As we actively continue to diversify our assets and increase our global exposure, this investment forms part of our strategic focus on responsible investing.

“The renewable energy sector has become increasingly attractive for our long-term investments due to its secure returns in conjunction with a wider ESG significance. Across Legal & General, we are taking a proactive approach to ESG and it is crucial that we continue to invest in strong performing assets, where we also see prospects to drive value and offer secure returns”.

Daniel Parejo, head of M&A and financing at Qualitas Energy, said: “This is another major investment for us in the Spanish renewable energy sector and we are delighted to work with LGIM to strengthen our presence in this important and thriving sector. LGIM impressed us with their flexibility and thorough understanding of the market.”

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