Berenberg launches a new RE Debt Fund

Berenberg Private Bank is launching its fourth renewable energy debt fund as part of the expansion of its debt fund portfolio.

Berenberg Renewable Energy Debt Fund

The multi-investor Berenberg Renewable Energy Debt Fund allows a broad base of investors, such as institutional investors, family offices, churches or foundations, to invest in the expansion of renewable energy in the mid-single digits.

« By focusing on the form of junior debt financing in the development, construction and operation phases of so-called late-stage projects, an attractive return in the single-digit percentage range can be achieved for investors with predictable cash flows and a good collateral structure, » explains Torsten Heidemann, head of infrastructure and energy at Berenberg.

The funding in the different phases of the project provides urgent support to developers of new renewable energy projects. The strong demand for capital is directly illustrated by the high number of transactions recently closed by Berenberg, as well as by the large number of financing requests.

3 other funds

Under the names Berenberg Green Energy Junior Debt Fund I, II and III, Germany’s oldest private bank has already launched three junior debt funds for professional investors. With a total volume of approximately 600 million euros.

With its focus on OECD-wide investments, the company has already financed more than 100 wind and solar farms in Germany, Scandinavia, Great Britain, Spain, Poland and Italy, as well as in Japan, Chile, Australia and the USA.

15 to 50 million euros per project

The focus is on a funding volume of 15 to 50 million euros per project. The funds finance investments in the form of junior debt and meet the high requirements of investors in terms of diversification and risk/return profile.

As such, the new fund complements a series of closed-end debt funds launched since 2016 through which direct loans have been made in the corporate finance, ship mortgage, and renewable energy and infrastructure project finance segments.

5th fund to come

During the year, the launch of another renewable energy debt fund is planned, focusing on the unitranche form of financing, which can offer an attractive yield and combines senior collateralization with a higher investment volume at the same time.
In addition, BayernInvest Luxembourg has accompanied Berenberg as an alternative fund manager for many years.