Infranity has led a €350m financing for IFM Investors-managed FM Net Zero Infrastructure Fund’s (IFM NZIF) investment in European renewable energy firm ERG.
Infranity has provided €125m as the anchor investor, making it the largest lender in the €350m financing for the stake in ERG owned by IFM and its affiliate.
ERG, founded in Genoa in 1938, transitioned from its initial refinery operations to become a fully renewables-focused independent power producer.
In 2022, IFM, via its open-ended IFM NZIF fund, announced plans to invest an initial €1bn in a partnership with Italian company San Quirico to acquire ERG. The plan involved IFM and San Quirico forming an entity, which will, in turn, acquire and hold a 62.5% stake in ERG. At the time, IFM said the IFM NZIF fund and its affiliates will hold an initial 35% stake in the new entity.
ERG currently maintains an installed capacity of approximately 3.8GW, comprising 3.1GW of wind and 0.7GW of solar.
Marie Dowlatyari, vice president at Infranity, said: “We are very pleased to support the HoldCo financing for IFM Net Zero Infrastructure Fund and its affiliates’ look through stake in ERG.
“This partnership underscores Infranity’s belief that investment in infrastructure that enables a sustainable energy transition offers considerable opportunities to create long term value and deliver risk adjusted returns.“
To read the latest IPE Real Assets magazine click here.
