SparkSpread reports on the launch of Foresight’s renewable debt fund

Kim Nguyen told SparkSpread, an Acuris platform on energy investment, that the launch of the Foresight Renewable Energy Income Fund – a 5-year infrastructure debt fund that plans to raise $150 million for small scale Australian solar and wind projects – will be able to achieve high yields due to its focus on smaller projects, which have hitherto “struggled with grid connections or hits to revenue from marginal loss factor changes”. 

The Fund’s targeted return is 4.0% to 4.5% over the RBA’s cash rate, and Nguyen noted that “this is considerably more than the BBSW plus 200 basis points, or less, banks get from lending to utility-scale projects”.

With expectations that the portfolio will have increased in value in 5 years’ time, Nguyen highlights that “investors will enjoy a special dividend”.

Find out more about the Foresight Renewable Energy Infrastructure Fund here.