First close for BNP Paribas AM’s Euro Infrastructure Debt Fund

BNP Paribas Asset Management announced a first close for its European Junior Infrastructure Debt Fund II, with €280 million of commitments subscribed by eight European and Asian institutional investors.

This fund follows the advanced deployment of the first vintage of this junior infrastructure debt, which has invested more than €300 million in several dozen innovative European infrastructure projects. After the deployment of Junior I, this vehicle will apply the same financing policy and will support the energy transition, green mobility and digital infrastructure projects.

“Infrastructure debt is an asset class that has proven its resilience and ability to contribute to the ecological transition and digitalisation of the European economy”, said Karen Azoulay, Head of Infrastructure Debt, BNP Paribas Asset Management. “Debt Fund II is a vehicle that allows investors access to diverse portfolio opportunities and direct access to sub-investment grade infrastructure debt projects.”

The fund invests in sub-investment grade infrastructure debt, in a diversified manner, with a preference for operational assets, offering regular coupons and attractive returns. It embeds an exhaustive ESG analysis and impact assessment in the investment process, in line with BNPP AM’s investment strategy and sustainability approach. The fund invests in the main countries of continental Europe, where many projects supporting energy and digital transition exist.

Junior Infra Debt II successfully achieved its first investment in August to support Enfinity Global in the financing, development and construction of 1.5 GW of solar energy assets in Italy, a project aligned with the fund’s strategy to support companies engaged in helping the energy transition and the renewable energy sector.

The fund seeks to generate regular and stable long-term returns with a target size between €500 million and €750 million and a hard cap set at €1 billion. The weighted average maturity amount target is between 6 and 8 years and the fund is classified according to the Article 8 to SFDR regulations.

“Following the success of the fund Junior I, we are happy to announce the first closing of fund Infra Debt Junior II with a significant amount”, said Stéphanie Passet and Vincent Guillaume, co-heads of infrastructure debt, BNPP AM. “The launch of this second vintage strengthens our presence in the junior infrastructure debt market and highlights our ability to support the energy and digital transition of the European economy through financing various infrastructure projects on a European scale.”