September 24 (Renewables Now) - UK onshore renewables investor Octopus Energy Investments said today it will partner with Korea Investment & Securities (KIS) in a new renewables-focused fund.
The partnership brings GBP 107 million (USD 140m/EUR 119m) to support Octopus' plans.
The newly-formed Renewable Energy Income Partnership II (REIP II) is a 25-year vehicle with returns made up of UK government subsidies and power prices, delivered through fixed income, Octopus explained in a statement. It is the second in a series of renewables-focused, asset-based partnerships managed by Octopus following the GBP-300-million REIP I fund.
The new vehicle will acquire and finance a portfolio of 15 UK solar assets with the help of equity and senior debt from KIS. The senior debt will be acquired by Korean insurers Samsung Fire & Marine Insurance, KB Insurance and Hyundai Marine & Fire Insurance.
REIP II brings Octopus’ total assets under management (AUM) of institutional funds to GBP 2.3 billion.
(GBP 1.0 = USD 1.312/EUR 1.115)