FMO, the Dutch entrepreneurial development bank, has signed a USD 138 million investment with a dedicated investment vehicle established by Copenhagen Infrastructure Partners (CIP) to support the development of large-scale renewable energy projects across high growth markets.
FMO’s financing is matched by an equivalent USD 138 million equity commitment. The co-investment vehicle will invest alongside Copenhagen Infrastructure Growth Markets Fund II (GMF II), managed by CIP, in renewable energy projects primarily in India, the Philippines, Vietnam, Mexico and other eligible markets. Thus, together FMO and CIP have made available USD 276 million of incremental capital for GMF II investments in energy infrastructure.
CIP is a global fund manager and leading investor in energy infrastructure. Founded in Denmark, CIP has since 2019 had a growing presence in the Netherlands, in particular through the Growth Markets strategy. CIP is also active in the Dutch energy transition through Zeevonk, its joint venture with Vattenfall, which is developing an offshore wind and integrated energy project in the Dutch North Sea.
The financing will support a diversified pipeline of renewable energy infrastructure, including offshore and onshore wind, solar power and battery energy storage systems. FMO has classified 100% of its investment as Green, reflecting its contribution to climate mitigation through increased deployment of renewable energy capacity.
The transaction uses a dedicated investment structure that allows FMO to provide financing to a vehicle investing alongside GMF II. By combining FMO’s financing with an equivalent commitment, the structure unlocks USD 276 million of additional capital for the development and construction of renewable energy infrastructure in FMO’s markets.
GMF II focuses on large-scale energy infrastructure investments across selected growth markets in Asia, Latin America and EMEA. The fund recently closed its GMF II fundraising period with approximately USD 3 billion in commitments to the fund and associated vehicles including the above. At the time of final close GMF II had already committed USD 1.6 billion across nine investments. Its portfolio comprises primarily renewable energy generation and energy storage projects.
Juan Jose Dada, Co-Chief Investment Officer at FMO, said: “Scaling renewable energy in high growth markets requires both significant capital and financing structures that can respond to the realities of complex infrastructure projects. Through this partnership with CIP, FMO combines its financing with CIP’s investment capabilities to support a diversified pipeline of renewable energy projects in markets where demand for reliable, low-carbon power continues to grow.”
Niels Holst, Partner and Co-Head of Growth Markets Funds at CIP, said: “We are very pleased to welcome FMO as an investor in our Growth Markets Fund II. FMO is one of the world’s premier development finance institutions in the markets where GMF invests and thus brings a fantastic combination of capital, extensive insight and direct experience. This innovative investment structure scales GMF II’s investment capacity, facilitating the development and delivery of additional cost-efficient greenfield renewable energy capacity. We look forward to continuing to build and strengthen this strategic partnership with FMO”.
The transaction is expected to contribute to climate mitigation by increasing renewable energy capacity across its target markets and contributes to SDG 13, Climate Action.
