Munich Re Reserve Risk Financing, Inc, a subsidiary of Munich Re, has announced that it has managed to raise securitized financing worth $200 million. The money was raised with the American company Diversified Gas & Oil PLC.
Diversified are an owner and operator of oil wells, natural gas, and other associated assets. Munich Re has entirely funded the deal, and additionally, it also provided the required commodity price hedges that were vital to the deal.
The Munich Re Reserve Bank Financing President George Carrick spoke about the financing deal. He said,
“A financing of this type requires a combination of operator capability and quality long-lived reserves. DGOC, an efficient consolidator and operator of long-lived producing natural gas reserves, was uniquely positioned to avail itself of this structure.”
He added that Munich Re is pleased to have partnered with an innovative company like Diversified. On the other hand, this collaboration marks Diversified Gas & Oil’s first foray into securitized financing. In this regard, it should be noted that the company’s notes have been assigned BBB rating by well-known rating agencies Morningstar and Fitch.