German pension funds ask newly listed CHORUS to build wind and solar portfolio

Two unnamed schemes provide €25m towards building a renewables portfolio

CHORUS Clean Energy AG, the German renewables investor that recently listed on Frankfurt’s stock exchange, has won a mandate from two German pension funds to build up a portfolio of wind and solar park assets.

In a statement, CHORUS said the two pension schemes had provided €25m in capital for the renewables portfolio. Beyond locating and acquiring the assets, the mandate calls for CHORUS to manage them and report on their performance. The schemes are Versorgungswerke, or German pension funds for free trades like physicians, lawyers and architects.

“Right before our initial public offering (IPO), we announced that we would expand our asset management business,” said CHORUS CEO Holger Götze. “I’m pleased to say that a bit more than a week after the listing we can announce our first mandate and, because of the range of services we provide, expect to win more from institutional clients.” CHORUS listed on October 7 in Frankfurt, raising €119m in capital in the process. At €9.15, its share is trading somewhat below its listing price.CHORUS did not disclose the names of the Versorgungswerke in the statement though said they were “prominent.” Schemes from the space that have recently done renewables deals include the Bayerische Versorgungskammer (BVK), which has €62bn in assets. Over the last year the BVK has provided tens of millions of euros in debt finance for renewable energy infrastructure.

Another Versorgungswerk that has distinguished itself as a renewables investor is the €8.8bn physicians’ scheme Ärzteversorgung Westfalen Lippe (AEVWL). The AEVWL has invested €26.5m in a climate change fund launched by German development banking giant KfW and been active in debt finance for renewables.

Based in the Munich suburb of Neubiberg, CHORUS offers renewable funds for institutional investors. Its funds are invested in 67 wind and solar assets that can generate up to 250MW worth of clean power. The proceeds from its IPO are to be used to expand its business. Added CHORUS: “We feel confident about the near future, as our pipeline of investable renewable projects offer a combined capacity of more than 800MW.” Link