CIP launches green debt fund seeking to raise EUR 1bn

Offshore wind turbines. Image by: Copenhagen Infrastructure Partners (CIP).

February 3 (Renewables Now) - Copenhagen Infrastructure Partners (CIP) said on Thursday it is launching its first debt fund targeting to raise EUR 1 billion (USD 1.13bn) to support renewable energy projects globally.

The fund, CI Green Credit Fund I (CI GCF I), will provide private project finance debt with subordinated risk characteristics to renewable projects with a focus on offshore wind, onshore wind, solar photovoltaic (PV), biomass, storage and transmission assets. Its scope will include greenfield and brownfield projects mainly in Europe, North America and selective locations in the Asia-Pacific region.

The vehicle starts with EUR 320 million in seed capital committed by a small group of investors including an unnamed large Danish pension fund and Singlife with Aviva, a Singapore-based financial services company.

Marketing of the fund to institutional investors is underway, with final close expected within 12 months. The fund is looking to make its first investments in the coming months. It will mainly focus on direct investments, but will also be able to complete risk sharing deals, on which CIP has partnered with Whitecroft Capital Management, a specialist manager in bank capital opportunities.

“The Green Credit Fund is a significant step in our continued expansion as it broadens CIP’s offering to also include infrastructure debt,” said CIP managing partner Jakob Baruel Poulsen, “This is an important and necessary funding component of the global energy transition,” he added.

CIP is a major greenfield renewable infrastructure investor and says it is well positioned to use its know-how in providing debt solutions. Including CI GCF I’s seed close, the firm has nine funds under management with around EUR 16 billion in committed funds.

(EUR 1.0 = USD 1.132)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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