UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) has made its first investment on behalf of its high yield infrastructure debt platform.

UBS-AM REPM’s Infrastructure Debt Platform High Yield (IDP HY) strategy, as the sole lender, has provided a €35m loan to pan-European green energy firm Pacifico Renewables.

The funding will be used to refinance Pacifico’s existing debt and support the further growth of the business via the expansion of its asset base across Europe.

Pacifico operates a diverse portfolio of generating renewable energy assets across Europe, spanning onshore wind alongside solar photovoltaic units. The company’s fully operational assets comprise a total generation capacity of 166MW, with a further 3.1GW of assets in its development pipeline, with aims of reaching 400MW capacity by 2023.

Alessandro Merlo, the head of infrastructure debt at UBS-AM REPM, said the deal, which is the first transaction for IDP HY, represents the strong demand for both infrastructure financing and alternative direct lending solutions away from traditional bank debt.

“We have an exceptionally strong pipeline for IDP HY, and have already seen significant interest in the decarbonisation and digitalisation spaces for this strategy.

“We look forward to announcing further capital deployment in this space, alongside our work with Pacifico Renewables,” Merlo said.

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