A consortium made up of Infranode, Kommunal Landspensjonskasse (KLP) and a subsidiary of Natixis Investment Managers have agreed to buy a Norwegian district heating company from iCON Infrastructure.
Infranode and Mirova’s Core Infrastructure Fund II are both investing with 25-year ownership horizons and have 42.5% ownership in Oslofjord Varme respectively. Life insurance company KLP will own the remaining 15% stake.
No financial details were disclosed.
Oslofjord Varme builds, owns and operates district heating and cooling systems in the Fornebu, Lysaker and Sandvika area in the Greater Oslo Area.
The company also holds joint venture interests in two district heating businesses namely Drammen Fjernvarme where it holds a 50% stake and Fredrikstad Fjernvarme where it holds a 35% interest.
Philip Ajina, a co-founding partner in Infranode, said: “Oslofjord Varme is our second infrastructure investment in Norway and is a great fit with our investment strategy.
“Oslofjord Varme has strong growth prospects with high emphasis on sustainability, which are key investment characteristics for our investors.”
Mounir Corm, the deputy head of infrastructure funds at Mirova, said: “This investment is consistent with our ambition to combine sustainability and community development with long-term and stable returns for our investors.”
Harald Koch-Hagen, the director strategic asset allocation at KLP, said: “Oslofjord Varme is a new addition to our commitment to sustainable investment and a new step in our endeavour to find attractive investment opportunities that are characterised by stable and predictable cash flows.”
The closing of the transaction is subject to approval from the Norwegian Water Resources and Energy Directorate