BNP Paribas unveils new Climate Impact Infrastructure Debt fund to foster energy transition

BNP Paribas has announced the launch of the BNP Paribas Climate Impact Infrastructure Debt Fund, a significant step in financing climate change mitigation and supporting the energy transition in Europe. This initiative, resulting from collaboration among BNP Paribas Asset Management, BNP Paribas Corporate & Institutional Banking, and BNP Paribas Cardif, aims to raise between EUR 500-750 million from institutional investors.

Fund’s Structure and Investment Focus

Managed by BNP Paribas Asset Management’s Private Assets division, the fund is structured as a Luxembourg Reserved Alternative Investment Fund (RAIF) and is classified under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR). The fund will focus on renewable energy, clean mobility, and the circular economy, including emerging sectors like batteries, hydrogen, and carbon capture. It has already secured three investments, including financing for a low-carbon energy producer, a green-sourced district heating platform, and a portfolio of onshore wind farms.

Leveraging Group Synergies for Unique Origination Opportunities

The collaboration within the BNP Paribas Group will leverage the group’s diversified model to provide scalable origination from both the wider market and internal teams. This includes the market-leading origination capabilities of BNP Paribas’ Low Carbon Transition Group, comprising over 200 investment professionals with an annual global origination in excess of EUR 20 billion.

Leadership Comments on the Fund Launch

Karen Azoulay, Head of Real Assets within BNP Paribas Asset Management’s Private Assets division, emphasized the fund’s strategic importance in financing the transition to a low-carbon economy. Olivier Hereil, Deputy CEO of Asset Management at BNP Paribas Cardif, highlighted their commitment to managing policyholders’ savings with a positive environmental and social impact. Khoi Anh Berger Luong, Head of Real Assets for EMEA at BNP Paribas CIB, and Séverine Mateo, Global Head of BNP Paribas’ Low-Carbon Transition Group, both underscored the fund’s alignment with the Group’s strategy to support a sustainable economy.

The Fund’s Impact on the Energy Transition

With this launch, BNP Paribas is set to play a pivotal role in financing projects that contribute to the energy transition across Europe. This initiative aligns with the broader commitment of the financial sector to support sustainable and environmentally friendly projects, marking a significant step towards a greener future.