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Foresight Italian Green Bond Fund lists two bonds totalling €20.0 million

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    • IRR Caserta: a €5.0 million project bond for a 5.5MW construction-ready portfolio comprising ten solar projects and one Combined Heat and Power (“CHP”) plant across Lazio, Calabria, Sicily and Campania
    • PECH: a €15.0 million project bond, as part of a €49.1 million bond, to finance the construction of a 34.7MW onshore wind farm in Campania
    • Both bonds are fully subscribed by the Fund and listed on the ExtraMOT Pro3 segment of the Italian Stock Exchange
    • The Fund has now invested €60.8 million (81.1% of committed capital) across five renewable generation and energy efficiency technology

Click here to view the announcement as a PDF.

London/Rome, 24 February 2021: Foresight Group LLP (“Foresight”) announces the arrangement and subscription of two project bonds totalling €20.0 million listed on Borsa Italiana. The bonds have received green certification under the Green Bond Principles of the International Capital Market Association.

The projects will provide sustainable renewable energy, helping to reduce dependency on non-renewable fossil fuels while reducing greenhouse gas emissions. They are expected to generate a combined 137GWh of clean electricity, sufficient to power more than 38,000 homes and save 57,900 tonnes of CO2 emissions every year.

Foresight Italian Green Bond Fund (“the Fund”) has now invested €60.8 million (81.1% of committed capital) across seven bonds and five renewable generation and energy efficiency technology sectors. The Fund remains on target to be fully deployed in 2021.

A €5.0 million bond issued by IRR Caserta S.r.l. was subscribed by the Fund to finance the construction of 11 renewable energy assets (one Combined Heat and Power “CHP” plant and ten rooftop solar projects) with a total generating capacity of 5.5MW located across Lazio, Calabria, Sicily and Campania, Italy. The bond has a 5.50% coupon and a tenor of 21 years.

The CHP project and four of the rooftop solar projects have long-term PPAs in place ranging from 14-20 years for 100% of the electrical and thermal energy produced. The remaining six solar projects have 20-year Feed-in-Tariffs (“FiTs”) to be granted under Italy’s Gestore dei Servizi Energetici S.p.A (“GSE”) for 100% of the electricity produced.

Of the €49.1 million bond issued by PECH S.r.l. €15.0 million was subscribed by the Fund to finance the construction of a 34.7MW onshore wind farm located in Campania, Italy. The project is fully owned by PECH S.r.l., a subsidiary company of the sponsor, Renexia S.p.A. The bond has a 4.95% coupon and a tenor of nine years.

Renexia will act as both the sponsor and the Engineering, Procurement and Construction (“EPC”) contractor for the project. Renexia, part of the Toto Group, specialises in the development, design, construction and management of renewable energy plants, with particular experience in wind and solar farms.

The project will benefit from a 20-year fixed price Feed-in-Tariff (“FiT”) under Italy’s GSE.

Diomidis Dorkofikis, Partner of Foresight, commented: “We are delighted to have completed two further bond subscriptions across three different sectors. In addition, the PECH bond represents the Fund’s first investment in the wind sector as well as its first co-investment alongside another Fund. Foresight Italian Green Bond Fund, which continues to provide innovative financing for small scale regional projects in the renewable energy and energy efficiency sectors, is now approaching full deployment and our well-diversified portfolio across five different sectors demonstrates how well-placed it is to fill the funding gap for long-term financing.”

ENDS


For more information please contact:

Diomidis Dorkofikis: ddorkofikis@foresightgroup.eu | + 39 06 4550 6734
Citigate (PR to Foresight):
Patricia De Bidegain: foresight@citigatedewerogerson.com / +44 (0) 7921 353 825
Will Easton: foresight@citigatedewerogerson.com / +44 (0) 7860 753146

Notes for editors

About Foresight Group LLP (“Foresight”)
Foresight is a listed infrastructure asset and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 36 years.

As at 30 September 2020, Foresight had c.£6.8 billion of Assets Under Management. Foresight manages 292 renewable generation assets globally, with a total generating capacity of 2.7GW.

Foresight manages more than 160 solar plants around the world generating over 1.5GW of solar power. Foresight has approximately 800MW of wind generation assets across the UK, France, Spain, Germany and Sweden of which 566MW are operational.

Foresight manages more than 40 bioenergy and waste projects processing some 1.8 million tonnes of waste every year, having mobilised approximately £900 million of capital investment into the sector. In addition, Foresight manages 210MW of Reserve Power assets and four utility scale Battery Storage projects providing 47MW of Enhanced Frequency Response services to National Grid.

Foresight has offices in London, Rome, Madrid, Luxembourg, Sydney, Manchester, Nottingham, Edinburgh, Cambridge, Milton Keynes, Leicester and Guernsey.

www.foresightgroup.eu

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.