New CIP fund gets USD 700m for renewables in Asia, Lat Am

Copenhagen Infrastructure Partners P/S (CIP) has received USD 700 million (EUR 624.2m) in commitments as part of the first close of a new fund that will invest in renewable energy projects in “fast-growing major new economies”, mainly in Asia and Latin America.

The Danish group expects to reach financial close on the Copenhagen Infrastructure New Markets Fund I K/S (CI NMF I) fund in the next nine months, bringing the total commitments to around USD 1 billion, it announced on Wednesday. Apart from investing in renewable energy infrastructure projects in the specified areas, the fund will also look at projects in certain countries in Eastern Europe and Africa. It will target the onshore and offshore wind, solar photovoltaic (PV), biomass, waste-to-energy and transmission grid schemes, among others.

“There is a large and growing need for new energy infrastructure outside of North America and Europe, which are targeted by the existing CIP funds,” said adds Jakob Poulsen, managing partner in CIP.

The proceeds in the first close were secured from leading Nordic investors -- PensionDanmark (PD), Kommunal Landspensjonskasse (KLP), Laegernes Pension and Arbejdsmarkedets Tilaegspension (ATP). All of these are cornerstone investors in other CIP funds, while ATP joined as a new investor. PD contributed USD 250 million, it said in a separate statement.

The fund has a term of 10 years and will operate under the so-called “build-and-exit” strategy that will see it back the project construction and selling the assets after their commissioning.

(USD 1.0 = EUR 0.892)

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