German mutual insurer Gothaer Versicherungen has invested €150m ($190m) under a 20-year profit-share agreement with a renewable energy firm.
Capital Stage, a Hamburg-based independent power producer, will invest the money over the next 12 months in acquiring and building solar farms. Capital Stage currently owns wind and solar farms in Germany, France and Italy with a total capacity of 313MW. The deal with Gothaer has the potential to double this.
Gothaer will receive a share of profits over the next 20 years. Its investment will form the equity in any future project finance and will be leveraged with an appropriate amount of debt, according to Capital Stage.
Gothaer has more than €25bn in assets and is a long-standing investor in renewable energy. Earlier this year the insurers announced it would dedicate a further €200m-300m to the sector. Previous investments include €150m in Juwi Renewable Energies.
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