BNP Paribas Asset Management (“BNPP AM”) announces that BNP Paribas European Junior Infrastructure Debt Fund II (“Junior Infra Debt II”) has held a first close, with 280 million euros of commitments subscribed by 8 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.
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 Inc in the financing, development and construction of 1.5 GW of solar energy assets in Italy. This project is well-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. BNP Paribas European Junior Infrastructure Debt Fund II is classified according to the Article 8 to SFDR regulations and will integrate the environmental and social considerations during all the investment process with the support of BNPP AM’s Sustainability Centre.
Karen Azoulay, Head of Infrastructure Debt at BNP Paribas Asset Management, comments:
"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. Debt Fund II is a vehicle that allows investors access to diverse portfolio opportunities and direct access to sub-investment grade infrastructure debt projects. Following the success of the first vintage, we are proud to continue this momentum with the development of our range with this second fund, which strengthens our positioning in the market."
Stéphanie Passet and Vincent Guillaume, co-heads of infrastructure debt at BNPP AM comment:
“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. This first step shows the increased interest of investors for the infrastructure debt and particularly in the strategy proposed by 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.”
The fund is managed by the Private Assets business unit at BNPP AM who, under the management of David Bouchoucha, has more than 100 professionals and more than 40 billion euros of assets under management and advice as of March 2024. It will rely on the strong origination capabilities of BNP Paribas Group as well as its diversified and integrated model.
