September 16 (Renewables Now) - Private equity investment manager Foresight Group LLP has launched an AUD-150-million (USD 103.2m/EUR 93.2m) renewable energy fund to invest in small-scale wind and solar projects in Australia.
The Foresight Renewable Energy Income Fund will offer loans of between AUD 5 million and AUD 30 million, providing investors with a yield of 4%-4.5% over the Reserve Bank of Australia’s cash rate and access to Climate Bonds Initiative certified green debt. The new investment vehicle will focus entirely on providing debt to renewable energy and related infrastructure projects. Its first closing is scheduled for November 2019.
The UK-based investment manager said the fund will give Australian wholesale investors access to an asset class that has typically been available exclusively to institutional investors. “We believe this sets the new gold standard for green debt funding in Australia,” added Nigel Aitchison, head of infrastructure at Foresight.
The fund is Foresight’s first wholesale initiative in Australia, although it manages funds on behalf of institutions and oversees investments of over 250 MW of Australian solar projects.
(AUD 1.0 = USD 0.688/EUR 0.621)