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Foresight Italian Green Bond Fund lists €7.5 million project bond investment in an anaerobic digestion plant

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  • Biogas Sardegna Green, a construction-ready anaerobic digestion (“AD”) plant in Sardinia
  • Capacity to process 30,000 tonnes of animal waste per annum and generate 0.6MW combined heat and power (“CHP”)
  • Senior secured project bond, 6.00% coupon, 9.5 year tenor
  • The Fund has now invested €68.3 million (91% of committed capital) across six renewable generation and energy efficiency technology sectors

Click here to read the announcement as a PDF

London/Rome, 28 July 2021: Foresight announces the arrangement and subscription of two project bonds totalling €11.35 million, of which Foresight Italian Green Bond Fund (“the Fund”) has subscribed €7.5 million, to finance the construction of an AD plant in Sardinia. The remaining bond amount will be provided by the Sardinia Region Development Fund (“SFIRS”), a regional government company which supports the economic and social growth and development of Sardinia.

The bonds are listed on the ExtraMOT PRO3 segment of the Milan Stock Exchange. The bonds have green certification under the Climate Bonds Initiative and are compliant with the International Capital Market Association's Green Bond Principles.

The project has secured five-year feedstock supply agreements with seven contracted suppliers, with the option to extend for a further five years. The AD plant will process 30,000 tonnes of animal waste per annum with a 0.6MW CHP unit.

The primary bond sponsor is Anaergia S.r.l, a well-established engineering, procurement and construction (“EPC”) contractor with over 25 years’ experience in the bioenergy sector.

The plant will be operated by BS Green S.r.l., a company fully owned by Anaergia, with more than 25 years’ experience in industrial design, business and livestock management, and renewable energy operations.

The plant will process animal waste which would otherwise be sent to landfill, producing sustainable heat and electrical power. The plant will produce 5,245MW hours of electricity annually, enough to supply over 1,900 homes and save 3,100 tonnes of CO2 emissions every year. The plant will also generate 6,132MW hours of thermal energy which will be utilised during operations.

The Fund has now invested €68.3 million (91% of committed capital) and remains on target to be fully deployed in 2021.

Diomidis Dorkofikis, Partner of Foresight, commented: “We are delighted to have completed this investment in Biogas Sardegna Green. This innovative AD project further diversifies the Italian Green Bond Fund portfolio which now covers six different renewable energy and energy efficiency sectors. This transaction confirms our effort to financing and managing innovative green projects in Italy and demonstrates our ability to work collaboratively and bring together strong counterparties across the public and private sectors.”

 

ENDS

 

For more information please contact:

Borja Miquel: foresight@citigatedewerogerson.com / +44 (0)20 7025 6631

Will Easton: foresight@citigatedewerogerson.com / +44 (0) 7860 753146

Notes for editors

About Foresight Group Holdings Limited

Foresight Group was founded in 1984 and is a leading infrastructure and private equity investment manager.  With a long-established focus on ESG and sustainability-led strategies, it aims to provide attractive returns to its institutional and private investors from hard-to-access private markets. Foresight Group manages over 300 infrastructure assets with a focus on solar and onshore wind assets, bioenergy and waste, as well as renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets. Its private equity team manages five regionally focused investment funds across the UK, supporting over 100 SMEs.  Foresight Group operates from 12 offices across six countries in Europe and Australia with AUM of £7.8 billion as at 30 June 2021.  Foresight Group Holdings Limited listed on the Main Market of the London Stock Exchange in February 2021. https://www.fsg-investors.com/

About Foresight Italian Green Bond Fund (the “Fund”)

Foresight Italian Green Bond Fund successfully reached Final Close on 2 July 2019 raising a total of €75 million from 14 Limited Partners, with the European Investment Bank (“EIB”) as a cornerstone investor. EIB’s commitment was made with the backing of the European Union through the European Fund for Strategic Investments (“EFSI”).

The Fund invests in small and medium sized renewable energy and energy efficiency projects in Italy through senior secured, fully amortising, listed green bonds. The investments will range between €5 million and €15 million.