BNP Paribas launches €700m climate impact infrastructure debt fund

BNP Paribas has launched a climate impact infrastructure debt fund with a capital raising target of €500m to €700m.

BNP Paribas Climate Impact Infrastructure Debt has received commitments from BNP Paribas Asset Management, BNP Paribas Corporate and Institutional Banking and BNP Paribas Cardif to finance climate change mitigation.

The fund is managed by BNP Paribas AM’s private assets division, is structured as a Luxembourg Reserved Alternative Investment Fund and classified as an Article 9 product under the EU’s Sustainable Financial Disclosure Regulation.  

The fund is expected to invest in energy-transition projects in continental Europe, focusing on renewable energy, clean mobility and the circular economy, including new sectors such as batteries, hydrogen and carbon capture.

Three investments have already been secured: financing for a low-carbon energy producer, a green-sourced district heating platform and a portfolio of onshore wind farms.

Karen Azoulay, head of real assets at BNP Paribas AM, said: “Since the establishment of our private assets investment division, environmental solutions have been a key strategic focus.

“The launch of Climate Impact Infrastructure Debt confirms this and marks a significant step forward in our ongoing efforts to support financing the transition to a low-carbon economy and offering our clients BNP Paribas’ unique origination capacity within this asset class.”

Olivier Hereil, deputy CEO for asset management at BNP Paribas Cardif, said: “As a responsible investor, we are proud to collaborate on the launch of Climate Impact Infrastructure Debt.

“Echoing BNP Paribas Group’s energy transition policy, our conviction at BNP Paribas Cardif is that it is essential to manage policyholders’ savings with a long-term perspective by combining financial performance with a positive impact on society. This new investment is part of our commitment to allocate an average of €1bn per year to positive impact investments by the end of 2025.”

Séverine Mateo, global head of BNP Paribas’ low-carbon transition group, added that, by combining BNP Paribas’ origination, distribution and investment capabilities within low carbon transition, the new fund “is perfectly aligned with the group’s strategy to accelerate the transition to a lower carbon and more sustainable economy”.

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