EIB credit enhancement lures UK insurers to project bond

Greater Gabbard offshore wind farm

UK insurers flocked to buy bonds issued to finance the acquisition of an offshore wind-farm transmission link, after guarantees by the European Investment Bank (EIB) improved the debt's rating. The public guarantee, which will act as a first-loss piece in the financing structure, played a key part in attracting insurers to the issue by making the investment more capital efficient, according to bankers. The Greater Gabbard bond issue was the first in the UK to use the EIB's credit enhancement