Fundraising

SCOR eyes up to €500m with third infra debt fund

The new vehicle is aiming for at least 75% to be invested in the energy transition and has already made three investments worth €90 million in total.

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SCOR Investment Partners has launched its third infrastructure debt fund, targeting commitments of between €300 million and €500 million.

The fund management arm of the French reinsurer kick-started fundraising for SCOR Infrastructure Loans III after it completed the deployment of its €378 million predecessor. The group’s second fund sealed 14 investments across eight sectors and four countries following a two-year deployment period, including a €222 million refinancing of an Italian solar portfolio and a French broadband PPP.

The new vehicle will differ in strategy from the two previous funds, with a heavier focus on energy transition projects and climate change. At least 75 percent of the deals secured by the new SCOR fund will aim to finance “green” projects and the firm is targeting deals accredited with the French government-backed “energy and ecology transition for the climate” label, a green finance benchmark. The fund will only target investment grade countries in the EU, although a spokesman for SCOR said deals in the UK “will be difficult” partly due to its departure from the bloc and also that no currency risk will be borne by the fund.

SCOR said the strategy shift has been precipitated by a change in market trends and added it has already invested €90 million to back three projects, including a brownfield solar site in Italy and a telecoms project in France.

“Our strategy on the infrastructure debt market consists of offering investors mid-sized funds – between €300 million and €500 million – with a granularity of 10 to 15 loans,” said François de Varenne, chief executive of SCOR Investment Partners. “This approach allows us to be flexible and to renew our offer every two years in order to adapt to the market conditions and our clients’ changing demands, including a contribution to the energy transition.”

SCOR’s first fund raised €318 million following its launch in 2013. It was involved in projects such as the construction and operation of a metro line in Milan, the €1.1 billion refinancing of the A63 motorway in France, the €1.25 billion refinancing of Alpha Trains and solar and offshore wind projects in the Netherlands.