Kommunalkredit eyes year-end €250m close for debut debt fund

The Austrian outfit has secured a first close of €190m from five investors, the proceeds of which have already been invested.

Austrian infrastructure bank Kommunalkredit has reached a €190 million first close on its maiden debt fund and aims to close the vehicle by the end of the year.

Fidelio KA Infrastructure Debt Fund Europe 1 has a €250 million target and is seeking senior debt investments with a 3 percent return. The initial capital has been raised from five insurance companies and pension funds, largely from Austria and Germany, and has already been invested.

The 10-year fund is looking to invest across sectors and countries in Europe, although Kommunalkredit declined to expand on specific projects that have been backed or are being targeted. The fund has exclusive access to the bank’s transaction pipeline, with Kommunalkredit now expanding its offering to include asset-management capabilities.

The first half of the year saw the bank increased its commitments by 46.7 percent, with €532.5 million lent to 10 projects in seven countries. Deals included the €650 million refinancing of KKR-owned Deutsche Glasfaser and a refinancing of a Polish toll road partially managed by Meridiam. Kommunalkredit was also part of a €1.6 billion project-bond financing for Italy’s Superstrada Pedemontana Veneta toll road last year. It said focused debt placements with institutional investors “were instrumental” in new business origination.

Kommunalkredit is predominantly owned by investment group Interritus. The bank was nationalised in 2008 in the wake of the financial crisis and subsequently sold to Interritus in 2015, with Austrian municipalities retaining a 0.22 percent stake.