One year after the launch of the fundraising, Foresight Group announced to have reached a first closing at 70 million euros for its Italian Green Bond Fund, which will focus on investments in project bonds financing small and medium projects in renewable energy generation (including solar, wind, waste-to-energy, biomass and anaerobic digestion) and energy efficiency ( including public lighting, cogeneration and district heating). The project bonds will be rated investment grade, fully amortising, will target returns of between 6% and 8% and will be listed at the ExtraMot Pro market.
The fund has generated strong appeal amongst banks, insurance companies and family offices with support at first close from leading financial institutions including the European Investment Bank (with a committement equal to a 20% of the total committements raised).
Actually EIB has a total committment of 40 million euros, Foresight said last year when it was launching the fund, while the fund is targeting a total of 200 million euros. Sponsor of the fund is Elaris Holding, an Italian company with a focus on renewable energies and tele-heating, which has a committment of 80 million euros (of which 40 millions have been already allocated and other 40 millions to be invested in the next two years).
The Italian Green Bond Fund is a Luxembourg veichle with a 7 years’ life. The first investment is expected by the end of next marh. The fund was structured with the support of Orrick law firm.