Fred. Olsen Renewables attracts EUR-480m wind investment

An investment fund backed by a trio from Norway, Germany and Singapore has agreed to provide EUR 480 million (USD 482m) in equity financing to Fred. Olsen Renewables AS (FORAS) for the development of existing and future wind projects in the Nordics and the UK.

FORAS, a fully-owned unit of Norwegian group Bonheur ASA (OSL:BONHR), said in a statement on Tuesday that each of Kommunal Landspensjonskasse (KLP), MEAG Munich ERGO AssetManagement GmbH and Keppel Infrastructure Trust (SGX:A7RU), which is sponsored by Keppel Corporation Limited (SGX:BN4), will contribute EUR 160 million. In exchange, the investment fund they are backing will get a 49% stake in the wind assets that are the subject of this partnership.

Of the total financial commitment, a cash consideration of EUR 176 million will be invested in a 258-MW portfolio of existing wind projects in Norway and Sweden, including Lista Vindkraftverk AS, Fäbodliden Vindkraft AB and Högaliden Vindkraft AB. The fund will receive a 49% interest in each of those projects.

In addition, it will get the exclusive right and obligation to invest in all onshore wind projects in the UK and Sweden for which FORAS takes a Final Investment Decision (FID), up until the EUR-480-million commitment target is reached or a five-year period has lapsed.

According to Jopy Chiang, CEO of Keppel Infrastructure Fund Management, the Trustee-Manager of KIT, this will be KIT’s first investment in the renewable energy sector and its maiden acquisition in Europe.

In turn, Loh Chin Hua, CEO of Keppel Corporation, said the following: “The investment will provide Keppel not only with stable recurring income from the operating assets, but also a strong deal flow pipeline in well-established markets in the Nordics and the UK.”

Hvitsten AS, which is licensed as an infrastructure fund manager owned by Fred. Olsen & Co, will be managing the investment fund.

(EUR 1 = USD 1.004)

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