BNP Paribas has launched a portfolio aiming to help fund projects and businesses involved in energy transition and climate-change mitigation, writes Pete Carvill.
The BNP Paribas Climate Impact Infrastructure Debt fund will be structured as a Luxembourg Reserved Alternative Investment Fund and classified as ‘Article 9’ under the Sustainable Finance Disclosure Regulation. The bank added it would be supported by the aligned commitments of BNP Paribas Asset Management, BNP Paribas Corporate & Institutional Banking and BNP Paribas Cardif to finance climate change mitigation.
The fund will have an investment-grade profile and is expected to allocate to transactions in continental European countries, supporting energy transition projects that focus on renewable energy, clean mobility, and the circular economy, including new sectors such as batteries, hydrogen and carbon capture.
‘Significant step’
Karen Azoulay, head of real assets within BNPP AM’s Private Assets division, said: “From its inception, environmental solutions have been a key strategic pillar of our Private Assets division. The launch of Climate Impact Infrastructure Debt confirms this and marks a significant step forward in our ongoing efforts to support financing the transition to a low-carbon economy and offering our clients the bank’s unique origination capacity dedicated to this class of assets.”
Azoulay said a number of investments had already been secured for the fund, including financing for a low-carbon energy producer, a green-sourced district heating platform and a portfolio of onshore wind farms. Sourcing capability, she added, would benefit from the “market-leading origination capabilities” of the firm’s Low Carbon Transition Group, with more than 200 dedicated investment professionals advising on and originating low-carbon assets and an annual global origination in excess of €20bn.
Séverine Mateo, global head of the Low-Carbon Transition Group, added: “Bridging across BNP Paribas’s origination, distribution and investment capabilities in the low-carbon transition space perfectly fits with the group’s strategy to accelerate the transition to a lower-carbon and more sustainable economy.”
This story first appeared in our sister publication, Expert Investor.
