In the utility sector, we guarantee debt of privately owned utilities providing essential public services under appropriate government regulation. We have extensive experience underwriting index-linked structures, which are often appropriate for regulated companies with inflation-indexed rate schedules.
In some markets, there is excess demand from pension funds and insurance companies for high-quality assets to match their long-term liabilities. We help utilities tap this funding source by guaranteeing eligible obligations with maturities as long as 50 years.
In addition to guaranteeing bonds of regulated water companies, we insure financings for gas and electric power transmission and distribution systems, where we have no exposure to power generation risks. In the renewable energy sector, we will consider power generation assets involving wind and solar projects.