IPE Real Assets reports on first Australian debt fund to be Carbon Trust-certified

Florence Chong recently covered the imminent launch of the Foresight Renewable Energy Infrastructure Fund, for Investment & Pensions Europe. She reports that Foresight Group plans to launch its first infrastructure debt fund in Australia later this month, seeking to raise up to A$200m (€122m) to finance renewable energy projects, which will be aimed at Australian institutional and wholesale investors. The fund will look to lending facilities of between A$30m and A$40m, a market that is currently not serviced by large banks.

The article notes that “Kim Nguyen, head of Australia, Foresight Group, told IPE Real Assets that pre-launch discussions with potential investors had yielded a positive response.

They were attracted to the fund’s green credentials, she said, adding that Foresight would be the first debt fund in Australia to be certified by the UK-based Carbon Trust.

Equity would be raised in two or three tranches, with the first close scheduled for November this year.”

It further quotes Kim as saying: “We expect to raise A$50m in the first tranche and the capital will be deployed into projects soon after that. We already have a pipeline of projects. We have begun due diligence on some of them and issued term sheets to potential borrowers.”

This article originally appeared in IPE Real Assets 23rd August 2019, and can be read in full here. Find out more about the Foresight Renewable Energy Infrastructure Fund here.