​BNP Paribas raises €280m for sub-investment grade infra debt

BNP Paribas Asset Management’s (BNPP AM) second European sub-investment grade infrastructure debt fund has secured €280m in initial capital commitments from eight investors.

The manager said the BNP Paribas European Junior Infrastructure Debt Fund II’s initial capital commitments were secured from European and Asian institutional investors, without disclosing the identities and specific investments.

The fund, which has a €1bn hard cap, aims to raise between €500m and €750m.

Junior Infra Debt II, like its predecessor fund, will finance energy transition, green mobility and digital infrastructure projects, with a “preference for operational assets, offering regular coupons and attractive returns”, the manager said.

The predecessor fund has invested more than €300m in several dozen innovative European infrastructure projects, BNPP AM said.

Junior Infra Debt II made its first investment in August, when it provided funding to Enfinity Global for the development of 1.5GW of solar projects in Italy.

Karen Azoulay, the head of infrastructure debt at BNP Paribas Asset Management, said: “Infrastructure debt is an asset class that has proven its resilience and ability to contribute to the ecological transition and digitalisation of the European economy.

“Debt Fund II is a vehicle that allows investors access to diverse portfolio opportunities and direct access to sub-investment grade infrastructure debt projects.”

Stéphanie Passet and Vincent Guillaume, co-heads of infrastructure debt at BNPP AM, said: “Following the success of the fund Junior I, we are happy to announce the first closing of fund Infra Debt Junior II with a significant amount. This first step shows the increased interest of investors for the infrastructure debt and particularly in the strategy proposed by BNPP AM.

“The launch of this second vintage strengthens our presence in the junior infrastructure debt market and highlights our ability to support the energy and digital transition of the European economy through financing various infrastructure projects on a European scale.”

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