Norges Bank Investment Management, the fund management division of Norges Bank, agreed to allocate €900 million ($1 billion) to Copenhagen Infrastructure Partners‘ (CIP) latest renewable energy fund.
The group manages the assets of the world’s largest sovereign wealth fund/pension fund that was founded following the discovery of one of the world’s largest offshore oilfields off the coast of Norway. The NOK 17 trillion ($1.2 trillion) investment fund acts as a buffer from the ups and downs of oil revenue. In recent years, officials have been focused on renewable energy investments.
The management mandate from the Norway Ministry of Finance, which opened in 2019, allows for direct and indirect investments in unlisted renewable energy infrastructure. To date, the fund has closed six direct investments within solar and onshore and offshore wind in Europe.
“This agreement will enable us to invest in renewable energy projects in the development stage. The investment is a valuable addition to the portfolio we are currently building, said Mie Holstad, chief investment officer real assets at Norges Bank Investment Management. “It will provide further investment possibilities and exposure to other parts of the value chain, as well as the opportunity to continue building knowledge and experience with new markets and technologies.”
CIP’s fifth fund is slated to invest in renewable energy with a focus on offshore and onshore wind, solar farms, grid and distribution, and storage. The investments will be equally split between three regions: North America, Western Europe, and developed countries in the Asia Pacific region, officials said.
The new CIP fund recently received a mandate from the New York State Common Retirement Fund within its real assets portfolio. The University Pension Plan in Ontario also allocated to the fund earlier this year.
“We have worked for a long time to map out the investment risks and non-financial risks and are pleased with our choice of CIP as a partner,” Holstad added. “CIP is an experienced industrial partner with a good reputation. Our evaluations have shown that CIP has created value for investors in an open and responsible way.”
