EIB backs innovative renewable energy infrastructure fund in Denmark

The European Investment Bank (EIB) is providing equity-type financing of up to EUR 75m (some DKK 560m) to Copenhagen Infrastructure Partners (CIP) for an innovative infrastructure fund (Copenhagen Infrastructure II) investing in large energy-related projects such as offshore wind, biomass and transmission schemes. The EIB financing will be proposed for backing by the EU budget guarantee under the European Fund for Strategic Investments (EFSI).

The renewable energy infrastructure fund Copenhagen Infrastructure II targets mezzanine and equity-type investments primarily in newly established greenfield energy-related projects, located mainly in Northern and Western Europe. This groundbreaking operation will enable institutional investors to engage at an earlier stage in large renewable energy infrastructure projects. The fund also stands out in terms of its innovative structure, accommodating a long-term investment horizon of 20 years.

The fund will primarily focus on renewable energy projects that generate energy with typically lower pollutant and climate-relevant emissions than conventional fossil fuel-based power plants. The anticipated high share of offshore wind, biomass and transmission investments is expected to generate considerable employment in the construction phase (around 2500 - 4000 jobs). It is also estimated that some 1000 jobs may be created during the project’s operation, a significant number of which will be highly-skilled jobs.

Jonathan Taylor, EIB Vice-President responsible for lending in Denmark, stated “We are proud to support this innovative fund, as it will contribute to the achievement of European targets for renewable energy generation and CO2 emissions reduction, safeguarding and creating at the same time a significant number of jobs. This first transaction in Denmark under the Investment Plan for Europe shows that the EIB is honouring its commitment to roll out the initiative even before the EFSI is officially launched.”

In recent years, the EIB has played a leading role in supporting the offshore wind sector on the debt side, and it is now also embarking on the equity side to provide further support to the development of this large-scale and strategic infrastructure for Europe.

 

Background information:

About European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2014, the EIB lent EUR 875m for Danish projects, an increase of 35% compared to the 2013 lending volume (EUR 650m). The focus of the Bank’s lending in Denmark over the last five years has been on projects promoting research, development and innovation in the industrial sector.

 

About EFSI

The European Fund for Strategic Investments is an initiative designed to boost jobs and growth in the EU. It is based on a close partnership between the European Commission and the European Investment Bank. The Fund will mobilise at least EUR 315bn in private and public investment across the EU. It will be backed by a EUR 16bn guarantee under the EU budget. The EIB Group, which is contributing a further EUR 5bn to EFSI, has been urged to accelerate the implementation of lending and guarantee transactions that are eligible under the EFSI EU budget guarantee even before the Fund is formally established. EFSI will support mainly strategic investments, in fields such as infrastructure, environmental and digital transition, training and smaller companies with fewer than 3 000 employees, with a particular focus on SMEs. The Fund will be complemented by the European Investment Advisory Hub to help with project identification, preparation and development across the Union. Finally, a European Investment Project Directory will be established to improve investors' knowledge of existing and future projects.

 

Press contact:

Alicja Chytla, a.chytla@eib.org, tel.: +352-4379-88233

EIB website: www.eib.org/press; Press Office: +352 4379 21000 – press@eib.org

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