AMP Capital has made a €245 million mezzanine debt investment in French renewables developer Neoen to fund 1.6GW of projects in Australia and France.
The financing was closed in three cross-collateralised currency tranches in euros and US and Australian dollars last week, and has been validated as a Green Bond.
AMP said the loan will be used to finance “secured construction projects for a global 1.6GW portfolio of onshore wind and solar photovoltaic assets, located predominately in France and Australia”.
“Neoen has a high-quality portfolio of Australian renewable assets with long-term PPAs in place with strong creditworthy counterparts,” said Simon La Greca, a partner of AMP’s infrastructure debt team. The Australian portfolio comprises eight assets of wind and solar across New South Wales and South Australia.
“We believe this presents a compelling opportunity for our infrastructure debt investors. The portfolio we are funding is a unique business, by virtue of its scale and geographic and technological diversification,” said La Greca.
He added that the investment will provide its AMP Capital Infrastructure Debt Fund III with diversification, both in type of energy and geographic exposure.
Fund III was closed in August 2017 on the hard-cap of $2.5 billion alongside an additional $1.6 billion for co-investment and other commitments.
The infrastructure debt team has invested more than $3.8 billion in 62 infrastructure debt assets since 2001.