BNP Paribas announced the launch of its new BNP Paribas Climate Impact Infrastructure Debt fund.
The initiative is a collaborative effort involving BNP Paribas Asset Management (BNPP AM), BNP Paribas Corporate & Institutional Banking (BNPP CIB) and BNP Paribas Cardif.
The fund is designed to provide comprehensive financing solutions to projects and entities involved in energy transition and climate change mitigation.
The fund, managed by BNPP AM’s Private Assets division, is structured as a Luxembourg Reserved Alternative Investment Fund (RAIF) and classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).
It aims to raise €500-750 million from institutional investors, including an initial seeding commitment from BNP Paribas Cardif.
The fund is expected to maintain an investment-grade profile and will focus on supporting energy transition projects in continental Europe. These projects will align with the fund’s investment philosophy, concentrating on renewable energy, clean mobility, the circular economy and emerging sectors like batteries, hydrogen and carbon capture.
Already, three investments have 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.
The fund benefits from the collaboration within BNP Paribas Group, leveraging both internal and external origination teams. The sourcing capability is enhanced by BNP Paribas CIB’s Low Carbon Transition Group, which has over 200 investment professionals and an annual global origination exceeding €20 billion and BNPP AM’s infrastructure and sustainable finance experience.
Karen Azoulay, head of real assets at BNPP AM Private Assets, said, “Since the establishment of our private assets investment division, environmental solutions have been a key strategic focus.
“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 BNP Paribas’ unique origination capacity within this asset class.”
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