CIP launches its Green Credit Fund I with EUR1bn target

Copenhagen Infrastructure Partners (CIP) has launched its first debt fund – CI Green Credit Fund I (CI GCF I) – with EUR320 million (US$365.94 million) in seed capital. Marketing of the fund to institutional investors has been kicked-off and the fund will be targeting a fund size of EUR1 billion (US$1.45 billion). 

The fund will provide private project finance debt with subordinated risk characteristics supporting renewable energy projects globally. The focus will be on the green- and brownfield projects in offshore wind, onshore wind, solar PV, biomass, storage, and transmission assets, and the geographic focus of the fund will be Europe, North America, and selective jurisdictions in the Asia-Pacific region. The fund’s main focus will be on direct investments, but it also has the ability to do risk-sharing transactions. For risk-sharing transactions, CIP has partnered with Whitecroft Capital Management, a leading specialist manager dedicated to bank capital opportunities.

Seed capital to CI GCF I is provided by a small group of leading investors including a large Danish Pension fund and Singlife with Aviva, a Singapore-based financial services company. The CI GCF I fund will be marketed to existing and new investors from across the Nordics, Europe, North America, Asia, and Australia and is expected to reach a final close within 12 months.

Law firms Kirkland & Ellis and Plesner act as legal counsel and KPMG Acor Tax act as tax counsel.