The Keppel conglomerate and KIT said on Wednesday they had jointly committed 160 million euros for a combined 33.3% stake in a fund, which will invest in a portfolio of existing and future onshore wind power assets in Norway, Sweden and in the UK.
Projects are owned by Fred. Olsen Renewables AS (FORAS), a Norwegian renewable energy developer controlled by Bonheur ASA. (https://bit.ly/3yyfYrv)
The remaining 66% of the fund will be split between Norway’s Kommunal Landspensjonskasse (KLP) and Germany’s MEAG MUNICH ERGO Asset Management (MEAG), each committing to invest €160 million.
The fund will make an initial investment of €176 million to buy a 49% stake in FORAS’ three operating wind farms in Sweden and Norway.
It will also have an “exclusive right and obligation for five years” to co-invest in 49% of all future onshore wind farms in the UK and Sweden that FORAS will bring to final investment decision stage, said Keppel Corp in a joint statement with KIT. (https://bit.ly/3PFkPOH)
The investment expands Keppel’s existing wind energy portfolio and KIT’s first investment in the renewable energy sector, with both companies looking to grow their sustainable energy portfolio by the end of the decade, added the companies.
KIT will finance approximately €131 million in FundCo, thus obtaining a 27.3% stake in it, while the Keppel conglomerate will hold approximately 6% in the entity.
($1 = 0.9972 euros)