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CIP in $61m mezz loan to Texas wind farm

The loan comes from the €2bn Copenhagen Infrastructure II fund which is now 60% invested.

Danish fund manager Copenhagen Infrastructure Partners is providing a $61 million mezzanine loan for the construction of the Fluvanna I wind farm, in Texas.

The investment is being made out of its €2 billion Copenhagen Infrastructure II fund, which closed last July and is now 60 percent invested following this latest deal. The $250 million, 155.4MW Fluvanna I wind farm is owned and operated by renewables developer Terna Energy USA Holdings and should be up and running in the fourth quarter of next year. EPC contractor Wanzek will take charge of building the wind farm.

CIP and the renewables firm plan to keep developing more wind projects in Texas, with the 130MW Fluvanna II wind farm, adjacent to the deal just closed, next in line. A third undisclosed project is also in the works, according to Terna Energy USA Holdings chief executive Emmanouel Moustakas.

In July, CIP bought two onshore wind farms in Texas generating a combined 516MW being developed by TriGlobal Energy, which will provide maintenance for the projects after their 2018 completion.

The Danish manager has also staked its claim to the nascent US offshore wind market with the acquisition of Offshore MW, a company with rights to bid on an offshore wind project off the coast of Massachusetts, from Blackstone.

CIP II was originally targeting €1.5 billion, which it surpassed backed by 19 limited partners. They include eight Danish institutional investors at launch – DIP, JOP, Lægernes Pensionskasse, PBU, Nordea, Nykredit, PFA and PensionDanmark – as well as Kommunal Landspensjonskasse, Lærernes Pension, the European Investment Bank, AP Pension, SEB Pension, Oslo Pensjonsforsikring, SEB Pension och Forsakring, a UK pension managed by The Townsend Group, T&W Holding A/S, LB Forsikring and VILLUM FONDEN.