AMP Capital Infrastructure Debt team has closed a €245 million mezzanine debt investment with France-based renewable energy provider Neoen.
Neoen is headquartered in Paris and active across the renewables space including solar and wind, and currently operates in ten countries including France, Australia, Mexico and Argentina. It is the largest independent producer of renewable energy in France, and the third largest overall energy provider in the country.
The mezzanine financing was closed in three cross-collateralised currency tranches (EUR, USD and AUD) on 14 December 2017, and has been validated as a Green Bond following ESG (Environmental, Social and Governance) due diligence by Vigeo, a recognised sustainability expert.
The loan will provide financing for secured construction projects for a global 1.6GW portfolio of onshore wind and solar photovoltaic assets, located predominately in France and Australia.
AMP Capital Infrastructure Debt Partner Emma Haight-Cheng said: Given the drive for decarbonisation in developed markets, renewable energy is an important investment theme for us.
The investment will sit within AMP Capital Infrastructure Debt Fund III (IDF III), which closed to new investors in August 2017 after reaching its hard cap of US$2.5 billion and securing an additional US$1.6 billion for co-investment and other commitments as part of the fundraiser.
Ms Haight-Cheng added: The portfolio we are funding represents a unique business, by virtue of its scale, geographic and technological diversification as well as the expertise within Neoen underlying its development. France and Australia account for more than 80 per cent of the portfolio, representing robust, stable energy markets with transparent regulatory regimes and a history of support for renewable energy. We view the investment as offering robust and highly attractive risk-adjusted returns.
Xavier Barbaro, CEO of Neoen, commented: Neoen international ambition and track record of success allows us to secure significant long-term financings, achieve economies of scale and join forces with leading investors such as AMP Capital.
AMP Capital’s Infrastructure Debt team comprises 13 investment professionals located in London, New York and Sydney. It has invested more than US$3.8 billion in 62 infrastructure debt assets since 2001. Neoen was advised by Green Giraffe (financial) and De Pardieu Brocas Maffei (legal). AMP Capital was advised by Watson Farley Williams (legal) and Everoze (technical).
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About AMP Capital
AMP Capital is a specialist investment manager with A$178.9 billion in funds under management as of 30 June 2017 and more than 250 investment professionals. AMP Capital has a heritage and strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multi-asset solutions. It is a subsidiary of AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers.