Ilmatar, a Nordic energy company and Independent Power Producer (IPP), has secured a milestone group level debt financing package of 500 million euros in a transaction led by Copenhagen Infrastructure Partners (CIP) through its Green Credit Fund 1 with participation from Kommunal Landspensjonskasse (KLP), P Capital Partners (PCP) and accounts managed by CIP. The package comprises a day one committed tranche of 325 million euros and an uncommitted increase option of 175 million euros.
The deal further accelerates the growth of Ilmatar’s renewable energy production and strengthens its position as the leading Nordic IPP. In line with company’s strategy, Ilmatar develops, constructs, owns and operates its renewable energy sites.
“This debt package strengthens our position as an independent power producer as it enables us to accelerate building renewable energy production in Finland and Sweden in accordance with our strategy. We are pleased to partner with CIP and PCP in executing the green transition in the Nordics”, comments Ilmatar’s CFO Antti Sallila.
With this financing from CIP, its co-investors and PCP, Ilmatar has secured more than one billion euros in equity and debt funding for its growth strategy over the past five years.
Ilmatar has grown quickly to a leading Nordic IPP. During 2023, Ilmatar is commissioning six onshore wind farms and one solar farm in Finland. It has approximately 1GW portfolio of renewable energy in operation, under construction or in ready-to-build phases. Ilmatar is growing rapidly in Sweden, where its emphasis has been on solar energy, and has secured enough land to generate 4.2 terawatt hours of solar power per year. This corresponds to an electricity demand of approximately 210,000 detached houses. Ilmatar is also developing offshore wind power, energy storage and Power-to-X solutions in Finland and Sweden.
CIP is a global leader within greenfield renewable energy investments and is investing through its Green Credit Fund I. The fund focuses on providing private project finance debt with subordinated risk characteristics supporting renewable energy projects in Europe, North America, and selective jurisdictions in the Asia Pacific region. The project focus is on green- and brownfield projects in renewable energy infrastructure.
“We are delighted to be partnering with Ilmatar to accelerate the development and construction of renewable energy projects in Sweden and Finland. Ilmatar and its strong management team have a successful track record within the renewables space, and I see this transaction as a great opportunity for our CI Green Credit Fund I to make a meaningful contribution to the deliver the green agenda in Sweden and Finland with a very strong team”, comments Jakob Groot, Partner at CIP and Co-Head of the CI Green Credit Fund I.
PCP is a multi-strategy private credit investor based in Stockholm and is investing in this transaction via the company’s Transition Fund. The Transition Fund is dedicated to providing tailored financing solutions to projects and companies with the capacity to meaningfully contribute to society’s ongoing transition towards sustainability in Europe.
“PCP is pleased to contribute to this tailored financing in support of Ilmatar’s development as an independent power producer, well positioned to support Europe’s energy security and pathway towards carbon neutrality”, says Petter Lindblad, Director, PCP Transition.
KLP is Norway’s largest occupational pension fund. Company’s investments are in-line with the Paris Agreement and 1.5°C aim.
“KLP is excited to be a part of the lending consortium that enables further growth of Ilmatar and its portfolio of high-quality renewable energy projects in the Nordic market. We believe this investment will provide an attractive return to KLP’s owners”, says Oliver Siem, Director Investments and Operations at KLP.
Akereos Capital acted as sole bookrunner, structurer and exclusive debt advisor to Ilmatar during the process. Linklaters and Castren&Snellman acted as the lenders’ legal counsels while Ashurst and Krogerus represented Ilmatar.
Antti Sallila, CFO, Ilmatar Energy
Tel: +358 40 513 2981
Vilma Wiitakorpi Björkman, VP, Communications, Marketing & ESG, Ilmatar Energy
Tel: +358 50 308 0879
About Copenhagen Infrastructure Partners
Founded in 2012, Copenhagen Infrastructure Partners P/S (CIP) today is the world’s largest dedicated fund manager within greenfield renewable energy investments and a global leader in offshore wind. The funds managed by CIP focuses on investments in offshore and onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, storage, advanced bioenergy, and Power-to-X.
CIP manages eleven funds and has to date raised approximately EUR 26bn for investments in energy and associated infrastructure from more than 150 international institutional investors. CIP has more than 400 employees and 12 offices around the world. For more information, visit www.cip.com
About P Capital Partners
PCP is a multi-strategy private credit investor committed to unlocking the full potential of companies in Northern Europe through enduring partnerships. Our collaborative approach delivers tailored financial solutions and strategic advice to our investee partners. Founded in 2002, we have made over 150 investments providing over EUR 4.5 bn to our investees. PCP is headquartered in Stockholm, Sweden
In 2022, PCP reached final close on the Transition Fund, dedicated to supporting Europe’s transition towards sustainability. With commitments of approximately EUR 700m, the fund thematically invests in support of the following goals: (I) accelerating the development of a carbon neutral society; (II) supporting the development of the circular economy and; (III) improving the sustainability characteristics of harder to abate sectors.
Kommunal Landspensjonskasse gjensidig forsikringsselskap (KLP) is Norway’s largest occupational pension fund with over 1000 employees and group assets under management of approximately 1000 billion Norwegian kroner. KLP is owned by Norwegian municipalities, counties, public sector health enterprises and companies that offer their employees public sector occupational pensions. At KLP thinking simultaneously about society, the environment and responsible investment is part of our daily operations.