CIP’s new fund CI NMF I will invest in greenfield renewable energy projects across Asia, Latin America, and follow ‘build-and-exit’ strategy
Copenhagen Infrastructure New Markets Fund I (CI NMF I), a new fund of Copenhagen Infrastructure Partners (CIP), had reached final close last month, with LP commitments of $1bn.
The commitments exceeded the target fund size. CIP stated that its CI NMF I will primarily make investments in greenfield renewable energy infrastructure projects across fast-growing economies in Asia, Latin America and some countries in Eastern Europe, where there is scope for scale, growth and liquidity.
The new fund will follow the same value creation and de-risking approach as other CIP’s existing OECD-focused funds. It will invest in offshore and onshore wind, solar photovoltaics, biomass, waste-to-energy and transmission grid systems among others.
The fund has a 10-year term and follows a ‘build-and-exit’ approach. It will participate in completing late stage development, finance construction and divest the assets once they become operational.
CIP managing partner Jakob Baruël Poulsen said: “We are very pleased to reach a final close of CI NMF I with a mix of existing and new blue-chip institutional investors committing to the fund. Exceeding the fund’s target size in less than 6 months from first close is an important proof of investor confidence in CIP’s approach to energy infrastructure investments and a testament to the track record established with CIP’s Western Europe and North America focused energy infrastructure funds CI I, CI II, and CI III.
“With a total commitment of USD 1.0bn and CIP’s existing energy-focused platform the fund is in a strong position to tap into the attractive investment opportunities in energy infrastructure in the new and fast-growing major economies in Asia and Latam.”
In May, the CI NMF I fund achieved $700m with four investors
The final close last month follows the first close of $700m in May this year with four investors, namely PensionDanmark, Arbejdsmarkedets Tillægspension (ATP), KLP, and Lægernes Pension & Bank. The CI NMF I had also secured commitments from institutional investors including pension funds, insurance companies and family offices.
CIP partner and New Markets Fund head Niels Holst said: “We look forward to creating value for our investors, project owners and local communities through the fund’s investments. The investment pipeline includes several attractive renewable energy infrastructure project opportunities across all main target geographies and technologies, and the fund is well on track to make its first final investment decision and investments in 2020.”
In July, Beatrice Offshore Windfarm, which is a joint venture between SSE Renewables (40%), Copenhagen Infrastructure Partners (35%) and Red Rock Power Limited (25%), had achieved financial close on the refinancing of its senior debt facilities.
In May, the wind farm’s construction was completed. Powered by 84 turbines, the wind farm is located off the coast of Moray Firth, and generates 588MW of clean energy.