Alantra acted as Co-Arranger and Joint Lead Manager for EDP – Energias de Portugal, S.A., on its largest electricity tariff deficit receivable securitization under the Volta program

Jan 2024

Securitization

Portugal – Alantra has acted as Co-Arranger and Joint Lead Manager for EDP – Energias de Portugal, S.A. (“the Company” or “EDP”) in its largest electricity tariff deficit receivable securitization under the Volta program and the largest Portuguese ABS placed post financial crisis, enabling the sale of c.€898m of the 2024 tariff deficit.

EDP is a major global energy player and a leader advocate for the energy transition, actively engaged in the generation, distribution, and sale of gas and electricity. Operating across 29 markets, the Company serves over 9 million customers. EDP is involved in renewable energy projects, including wind, solar, and hydroelectric power, demonstrating its dedication to sustainable and environmentally friendly energy solutions. The company is a key player in the global energy market, continuously expanding its renewable energy portfolio in line with the growing focus on clean and sustainable energy sources.

The Senior Notes were subscribed to by nine investors, distributed regionally as follows: Spain (64%), United Kingdom (17%), Netherlands (10%), and Portugal (8%). In terms of investor types, Banks (71%), Insurance & Pension funds (17%), and Asset Managers (12%) were the investor categories involved.

The transaction, the eighth under the Volta program, is a private securitization. Tagus – Sociedade de Titularização de Créditos, S.A., acting as the Issuer, has issued €930m in Senior Notes backed by electricity tariff deficit receivables assigned to the Issuer by SU Eletricidade, a fully owned subsidiary of EDP. The Senior Notes carry a coupon rate of 3.45%. EDP has retained 5% of the Senior Notes to comply with regulatory retention requirements.