New Mirova Co-Investment Vehicle Participates in Major Renewable Infrastructure Project Alongside Engie and Credit Agricole Assurances
Mirova, an affiliate of Natixis Investment Managers, announces the recent creation of a co-investment vehicle, which has attracted existing investors in its current Energy Transition fund, Mirova Eurofideme 4 (“MEF4”), as well as new clients. The vehicle was created specifically to participate, alongside Engie and Credit Agricole Assurances, in the acquisition of the second largest hydroelectric portfolio in Portugal from EDP. The deal, valued at EUR 2.2 billion, completed in late December.
Investors in the new co-investment vehicle include Banca March, Merseyside Pension Fund, Natixis Assurances, Groupama, EB Sustainable Fund and LHI. MEF4, together with the MEF4 co-investment vehicle, own 25% of the total consortium. Engie owns 40%, while Crédit Agricole Assurances own 35%.
The deal, seen as one of the major renewable transactions in Europe of the last decade, demonstrates a significant scale-up in the size of the transactions and assets that Mirova is now successfully targeting, as well as highlighting a new appetite among institutional investors to be direct investors in large renewable infrastructure projects.
Raphael Lance, Head of Energy Transition Funds at Mirova, commented: “We have been investing in renewable infrastructure projects for over 18 years now, and only recently have we witnessed this willingness from our investors to commit directly to the projects. For this transaction we had a very strong round of partners from the beginning and were confident that others would join. We are grateful to our co-investors to have given us their trust, a positive endorsement which encourages us to target much larger assets than previously and helping to diversify our portfolio."
Peter Wallach, Director of Pensions, Merseyside Pension Fund, said: “MPF is a longstanding investor in the Infrastructure asset class and we’ve deployed over £250m into the Renewables sector. We are very pleased to co-invest alongside Mirova in this attractive portfolio of operational Portuguese hydro assets. This co-investment should generate good returns for our pension members in a cost-effective way, and the pumped storage facilities within the portfolio will also play a critical role in advancing the region’s decarbonisation of power generation.”
Juan Antonio Roche, Head of Products at Banca March reflected: “This project will allow our clients to co-invest alongside Banca March and a consortium of top international players in sustainable energy generation. Together with our partners and their capabilities we will create value for Banca March and our clients amidst a complex context that is demanding new sources of sustainable profitability, underpinning our commitment with ESG investments as a key trend in our strategic vision with a huge potential in the next decade”.
The acquired assets consist of the second largest hydroelectric portfolio in Portugal, located in the Douro valley, with 1.7 GW capacity and a weighted average concession term of 45 years. This portfolio includes three recently commissioned pump storage units along with three recently renovated run-of-river plants. The plants will be operated by Engie.
For further reading:
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
Investors in the new co-investment vehicle include Banca March, Merseyside Pension Fund, Natixis Assurances, Groupama, EB Sustainable Fund and LHI. MEF4, together with the MEF4 co-investment vehicle, own 25% of the total consortium. Engie owns 40%, while Crédit Agricole Assurances own 35%.
The deal, seen as one of the major renewable transactions in Europe of the last decade, demonstrates a significant scale-up in the size of the transactions and assets that Mirova is now successfully targeting, as well as highlighting a new appetite among institutional investors to be direct investors in large renewable infrastructure projects.
Raphael Lance, Head of Energy Transition Funds at Mirova, commented: “We have been investing in renewable infrastructure projects for over 18 years now, and only recently have we witnessed this willingness from our investors to commit directly to the projects. For this transaction we had a very strong round of partners from the beginning and were confident that others would join. We are grateful to our co-investors to have given us their trust, a positive endorsement which encourages us to target much larger assets than previously and helping to diversify our portfolio."
Peter Wallach, Director of Pensions, Merseyside Pension Fund, said: “MPF is a longstanding investor in the Infrastructure asset class and we’ve deployed over £250m into the Renewables sector. We are very pleased to co-invest alongside Mirova in this attractive portfolio of operational Portuguese hydro assets. This co-investment should generate good returns for our pension members in a cost-effective way, and the pumped storage facilities within the portfolio will also play a critical role in advancing the region’s decarbonisation of power generation.”
Juan Antonio Roche, Head of Products at Banca March reflected: “This project will allow our clients to co-invest alongside Banca March and a consortium of top international players in sustainable energy generation. Together with our partners and their capabilities we will create value for Banca March and our clients amidst a complex context that is demanding new sources of sustainable profitability, underpinning our commitment with ESG investments as a key trend in our strategic vision with a huge potential in the next decade”.
The acquired assets consist of the second largest hydroelectric portfolio in Portugal, located in the Douro valley, with 1.7 GW capacity and a weighted average concession term of 45 years. This portfolio includes three recently commissioned pump storage units along with three recently renovated run-of-river plants. The plants will be operated by Engie.
For further reading:
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