Deka Infrastrukturkredit has acquired a €10 million senior tranche of a project financing loan from Berlin-headquartered DekaBank, its parent bank.
The debt fund’s purchase represents a portion of the overall financing needed to build the 14 turbines, each with an output of 2.5 megawatts (MW), that will form the Mont d’Arcis wind farm in Eastern France. The project is co-financed by one of Germany’s Landesbanks, the country’s state-owned regional lenders, alongside DekaBank.
Established in 2009, Deka Infrastrukturkredit was the first open-ended senior debt vehicle to be launched in Germany. It is funded by commitments from institutional LPs, and solely focuses on senior debt attached to infrastructure loans.
Its past investments have targeted assets in Germany, the Netherlands, France, Austria, Finland and the US. For each senior tranch Deka Infrastrukturkredit acquires, Dekabank commits to hold an equal-ranking tranche, of a minimum volume equal to 50 percent of the fund’s investment, until repayment of the loan.
The fund’s latest deal is in the lower bracket of the investments it typically makes, which have tended to range between €10 and €20 million. It now has around €185 million under management.