Mirova Demonstrates Leading Edge Position in Area of Energy Transition Infrastructure

Mirova announces the launch of its new strategy to financing energy transition infrastructure. Focusing on renewable energy and low-carbon mobility sectors the strategy will offer great flexibility (majority or minority stake, equity or subordinated debt financing1, with the possibility of short-term bridge financing2), relying on the technical expertise of its team and the solid partnerships established in the industry.

The strategy will invest in tried and tested technologies (onshore wind farms, solar power, hydroelectricity, biogas) but will also be able to diversify in order to integrate evolving robust technologies, such as offshore wind farms. The team will also invest in the low-carbon mobility sector, notably to support the growth of the electric vehicle sector and the emergence of hydrogen.

The strategy will seek innovative projects, which it will support from the development stage across all of these sectors. The capacity invest in greenfield projects that reduce the carbon impact of energy production is one of the distinctive characteristics of Mirova’s team.
Another major element is that the team will seek to invest outside of Europe. This geographical diversification will target projects located in OECD member countries. The team could therefore invest in Asia, particularly to extend the partnerships established with European developers in this region, by replicating the models of certain projects already carried out in Europe.

‘’Renewable energy represents 20% of overall energy consumption in Europe. By 2030, this should rise to 32%. An investment of 1700 billion euros over the next ten years will be necessary to achieve this objective. As a responsible investor, we will continue to provide greater capital to sustainable and resilient infrastructure, and to give institutional investors the opportunity to play their part in the fight against climate change’’ says Raphaël Lance, Head of Energy Transition Infrastructure Funds. In order to support this strategy, Mirova’s Energy Transition Infrastructure team has expanded to 22.

With over 20 years’ experience investing in renewable energy infrastructure, the team manages €1.5 billion and has carried out over 70 operations over this period. An expert in the sector, the asset management company started in 2002 alongside ADEME3 in order to initiate the wind sector in France. It then progressively opened itself up to new geographies and technologies and increased its field of activity to low-carbon mobility in 2018. Over the years, Mirova has financed over 300 projects representing over 5.7 GW of production capacity installed across Europe4.  

For further reading:
1A debt is said to be "subordinated" if its repayment depends on the prior repayment of other creditors.
2Short-term financing, to be refinanced by senior debt
3French Environmental and Energy Management Agency
4Source: Mirova as of 30/09/2020

Mirova
Mirova is an affiliate of Natixis Investment Managers.
Portfolio management company - French Public Limited liability company
Regulated by AMF under n°GP 02-014
RCS Paris n°394 648 216
Registered Office: 59, Avenue Pierre Mendes France – 75013 – Paris.
www.mirova.com

Natixis Investment Managers
Natixis Investment Managers is a subsidiary of Natixis.
Portfolio management company - French Public Limited liability company
RCS Paris n°453 952 681
Registered Office: 43, Avenue Pierre Mendes France – 75013 – Paris.
www.im.natixis.com

This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.

Copyright © 2021 Natixis Investment Managers S.A. – All rights reserved