BNP Paribas launches climate impact infrastructure debt fund
BNP Paribas Asset Management has launched a climate impact infrastructure debt fund, designed to finance climate change mitigation.
BNP Paribas Climate Impact Infrastructure Debt is targeting €500m (£430m) to €750m from institutional investors, including a seeding commitment from sister company BNP Paribas Cardif.
The new vehicle is structured as a Luxembourg Reserved Alternative Investment Fund and is managed by the asset manager’s private assets division.
It will focus on transactions in continental European countries, supporting energy transition products such as renewable energy, clean mobility and the circular economy, as well as new sectors such as batteries, hydrogen and carbon capture.
Three investments have already been secured for the fund, comprising financing for a low-carbon energy producer, a green-sourced district heating platform and a portfolio of onshore wind farms.
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The fund has been launched with close collaboration between BNP Paribas Asset Management, BNP Paribas Corporate & Institutional Banking and BNP Paribas Cardif.
The firm said that this will ensure “unique and scalable origination from both the wider market and internal origination teams”.
“Since the establishment of our Private Assets investment division, environmental solutions have been a key strategic focus,” said Karen Azoulay, head of real assets at BNPP AM Private Assets.
“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.”
Impact investing is growing within the private credit space.
Avenue Capital is planning to launch a new fund early next year which will target private credit investments which have an environmental impact.
And BlueOrchard, an impact investment manager which is part of the Schroders Group, recently launched an impact credit fund dedicated to improving financial inclusion worldwide.
