PensionDanmark has alongside with Arbejdsmarkedets Tillægspension, Lægernes Pension and the Norwegian fund Kommunal Landspensjonskasse given investment commitment of USD 700m to the new fund, Copenhagen Infrastructure New Markets Fund established by Copenhagen Infrastructure Partners (CIP). The fund is expected to achieve further commitments of approximately USD 300m in the coming months resulting in a total commitment of approximately USD 1bn at final close.
”CIP has come a long way since PensionDanmark and CIP’s senior partners established the first fund back in 2012. At that time, PensionDanmark was sole investor – today more than 40 investors have joined the cooperation and the investment commitment has passed 50 billion kroner. CIP has demonstrated its ability to develop, construct and operate renewable infrastructure projects within wind, solar and biomass energy in Europe and America. The projects have been constructed without significant delays within the budget, and CIP has delivered very attractive returns to its investors. The new fund is a natural next step to broaden the investment universe to the new growth markets in Asia and Latin America where there are a significant need for constructing renewable energy infrastructure and thereby attractive invest-ment opportunities for CIP and its investors. The investment case is illustrating how to mobilize private capital in large scale to the green transition and thereby contribute to the global climate agenda,” says Torben Möger Pedersen, CEO at Pension Denmark and member of CIP’s investment committees.
The new fund will target greenfield renewable energy infrastructure projects in economies in primarily Asia and Latin America with scale, growth, and liquidity. The fund will apply the same value creation and de-risking approach as CIP’s existing OECD-focused funds and invest in offshore and onshore wind, solar PV, biomass and waste-to-energy, transmission grid systems among others.
PensionDanmark’s investment in Copenhagen Infrastructure New Market Fund is sup-plementing PensionDanmark’s investments in the Danish SDG Investment Fund, which has Investeringsfonden for Udviklingslande (IFU) as partner and administrator as well as the African Infrastructure Fund, managed by A P Møller Capital.