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AMP Capital has reached financial close on a SEK 1.47 billion (US$163 million) mezzanine debt investment in a portfolio of energy assets owned by Solør Bioenergi, a leading district heating business providing heating solutions across Sweden.
The loan facility is secured against a high quality portfolio of 43 operational district heating assets located around Sweden.
AMP Capital worked on an exclusive basis with the sponsor, Solør Bioenergi and its financial adviser SEB to structure and successfully close the transaction.
Solør Bioenergi’s portfolio has a total installed power of 620MW and delivers more than 1TWh of heat and steam per annum to an extensive network of residential, municipal, and industrial customers. Sweden has one of the coldest climates in Europe with the average temperature during winter months as low as minus eight degrees. District heating is a primary source of heat for the country where it is used all year to meet Sweden’s residential and industrial heating requirements.
AMP Capital Infrastructure Debt Partner and European Head Emma Haight-Cheng said: “This transaction delivers investors in our Infrastructure Debt strategy another strong core infrastructure investment in Europe. Solør Bioenergi is an established business with a highly experienced management team and a quality portfolio of infrastructure assets.
“AMP Capital has worked closely with Solør Bioenergi and SEB to structure a unique and flexible mezzanine solution which meets their requirements and we are pleased to add such a high quality investment to our existing portfolio on behalf of our investors.”
AMP Capital has been investing in the subordinated debt of infrastructure assets since 1998 and focuses on defensive, non-cyclical, cash flow producing assets.
AMP Capital is currently fundraising for Infrastructure Debt Fund III, its third debt fund, following successful final closes of IDF I and IDF II, which raised US$500 million and US$1.1 billion, respectively.
AMP Capital’s global infrastructure debt team has 12 investment professionals located in London, New York and Sydney.
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