Responsible Funds, Sept. 5: EIB mulls investment in new Mirova renewable infrastructure fund

The round-up of responsible funds news

The European Investment Bank (EIB) is currently appraising an investment in the new Mirova Eurofideme 3 renewable energy infrastructure fund. Fund manager Mirova launched the vehicle in June, aiming to raise €200m. It follows the Fideme (2002) and Eurofideme 2 (2008) funds. Mirova Eurofideme 3 will “offer European institutional investors access to project-companies that are developing renewable energy assets across Europe (mainly in the wind and photovoltaic space)”. In July, RI reported the fund had had a first close at €80m.

Glennmont, the European environmental investor, has raised €500m to invest in wind farms, solar farms and other infrastructure projects across the UK and Europe. The firm was spun out of BNP Paribas last year. The Daily Telegraph reported that new investors were thought to include the European Investment Bank and the London Pension Fund Authority.

AMP Capital’s $750m Infrastructure Debt Fund II has invested in Alterra Power Corporation, a leading global renewable energy company headquartered in British Columbia, Canada. The C$110m subordinated loan will be secured against a 264MW portfolio of equity interests in four renewable energy projects. AMP Capital is a global investment manager headquartered in Sydney that’s part of the AMP Group.

Demeter Partners, the Paris-based investment firm which backs green industries and technologies, has bought into Vergnet Hydro, which supplies affordable water systems to developing countries. The acquisition was via the Demeter 2 Fund, alongside Compagnie Financière du Lion, Sofimac Partners, Bpifrance Investissement and Nass&Wind. Announcement

Ecclesiastical Investment Management, the UK fund firm, is reportedly seeking to rebrand to Edentree Investment Management. Investment Week said Ecclesiastical has recently registered the new brand, adding the firm has said it would be in the context of social responsible investment, asset management and investment consultancy and advice. Ecclesiastical offers six funds, including the £229m (€288.3m) Amity International SRI fund.

The $500m China-CEE Fund, set up by the Export-Import Bank of China with institutional investors from the Central and Eastern Europe region, has teamed up with Israel-listed Enlight Renewable Energy to invest up to 1.3bn zlotys (€313m) to buy control of two Polish wind projects totalling 250.5MW in installed capacity. A joint venture will buy two wind farms developed by GEO Renewables.

Fashion designer Vivienne Westwood has reportedly invested £1m to become a major shareholder in Trillion Fund, a new renewable energy investment crowdfunding platform for wind and solar parks. “Trillions of pounds of ordinary people’s hard-earned cash currently goes to fund companies that are effectively destroying the planet without most of us even knowing about it,” Westwood was quoted saying by the Daily Telegraph.Scottish Equity Partners (SEP), the venture capital group, has raised £135m for a new infrastructure fund to invest in UK-based clean energy projects. The Environmental Capital Fund (ECF) has been backed by listed energy firm SSE, as well as a syndicate of financial investors led by Lexington Partners, the secondary private equity and co-investment specialist. SEP has recruited a new team to manage the fund, headed by Partner Gary Le Sueur. The fund has been anchored with the acquisition of an existing SSE infrastructure business (SSE Pipelines). SEP will use the balance of the fund to invest in a diversified portfolio of new, UK-based, clean energy infrastructure projects – such as hydro power, energy efficiency, heat pumps and district heating schemes. SEP said the launch complements its existing Environmental Energies Fund.

A global clean technology ‘Apollo programme’ is apparently being readied by a group of eminent scientists and public policy figures. A report is being put together by Sir David King, the former UK Government Chief Scientist, former BP CEO Lord John Browne, former Cabinet Secretary Lord Gus O’Donnell, Astronomer Royal Lord Martin Rees, London School of Economics Professor Lord Nicholas Stern and Lord Adair Turner, the ex-chair of the Financial Services Authority.

German infrastructure investment firm KGAL, a leader in renewable funds, says its funds paid €200m to acquire five onshore wind parks in France and Germany during the first half of 2014. That brings KGAL’s total investment in wind parks to around €1bn, and the combined capacity of the facilities in the portfolio is 583MW. In a statement, KGAL said it would continue to look for onshore wind opportunities not just in Germany and France but also in Ireland, Sweden and Finland. Link (German)

Allianz Global Investors says AREF, its renewable energy fund for institutional investors, has acquired two onshore wind parks in Germany, from UKA, the developer. The parks are the 24MW Gollnitz-West and the 12MW Rehfeld facilities, both located in the state of Brandenburg. Financial details were not disclosed. “The winds in Brandenburg are especially favourable. The fact that more than 3,000 wind turbines have been erected in this region speaks for itself,” said Armin Sandhövel, Chief Investment Officer for Infrastructure Equity at AGI. AGI closed AREF to new investment in September 2013 after it reached its target volume of €150m. Link