Copenhagen Infrastructure Partners (CIP), through its fund Copenhagen Infrastructure III K/S (CI-III), is pleased to announce that it has entered into an agreement to divest a 49% stake in the Monegros onshore wind portfolio to a fund managed by Arjun Infrastructure Partners (Arjun).
The Monegros portfolio consists of 12 onshore wind farms with a total installed capacity of 487 MW located in Aragon, Spain. Monegros is part of Copenhagen Infrastructure III K/S (CI-III), a EUR 3.5bn energy infrastructure fund managed by CIP.
“We welcome Arjun as partner in the Monegros portfolio and are pleased to enter in this transaction that recognises the value generated so far by CIP and its partners during the development and construction phase of this high-quality portfolio. With the projects now entering commercial operation, we are confident that further value will be delivered as the wind farms commence generating material volumes of subsidy-free renewable power that contributes towards the decarbonisation targets in Spain”, says Christian Skakkebæk, Senior Partner at CIP.
“We are delighted to partner with CIP and to invest on behalf of our clients in the Monegros portfolio. It has all the environmental credentials that we and our clients value and expect and offers an attractive sustainable, long-term risk / return profile. Monegros adds a quality onshore wind portfolio to Arjun’s existing renewables portfolio in Europe of circa 2,000 MW total gross capacity“, said Romain Py, Managing Director at Arjun Infrastructure.
Since CI-III acquired the development rights of the Monegros projects, substantial value has been created, initially in the development phase and subsequently in the construction phase, which is now nearing completion on time and on budget despite the challenges caused by Covid-19. The power output from the Monegros portfolio has been contracted under a long-term PPA and in July 2020 a consortium of six banks has committed a debt package of approx. EUR 380 million available for drawdown once the wind farms reach commercial operations date (COD). Following closing of the transaction, CI-III will remain controlling shareholder and operator of the Monegros portfolio.
The transaction is subject to customary closing conditions and will become effective once the entire portfolio has entered into commercial operations; CI-III will continue to fund the remaining construction cost of the Monegros portfolio. Watson Farley & Williams and FIH Partners advised CIP on the transaction. White & Case and Evercore advised Arjun.
About Copenhagen Infrastructure Partners (CIP)
Copenhagen Infrastructure Partners (CIP) is a Danish fund management company focused on renewable energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, storage, transmission and distribution, Power-to-X and other energy assets. CIP has approximately 130 employees and offices in Copenhagen, New York, London, Hamburg, Utrecht and Tokyo.
CIP manages seven funds with around EUR 14 billion in commitment under management. The funds have made more than 20 investments in large scale energy infrastructure assets totaling almost 8 GW in capacity (including transmission projects) across the US, Canada, the UK, Germany, Spain, and Taiwan. In addition, more than 20 green-field energy infrastructure projects are in process to reach final investment decision and start of construction within the next 3 years. Investors in the funds include several blue-chip institutional investors from the Nordics, Continental Europe, the UK, Israel, Taiwan, Korea, Australia, and multilateral organizations e.g. EIB. The investors in CIP’s funds comprise mainly pension and life companies and large family offices
CIP was established in 2012 by senior executives from the energy sector in cooperation with PensionDanmark and is today a global leader, market pioneer and the largest financial sponsor with a dedicated energy infrastructure focus. In December 2020, Vestas acquired a 25% stake in the CIP parent companies and will get representation at the CIP Holding board maintaining unchanged fund management activities carried out by CIP.
About Arjun Infrastructure
Arjun Infrastructure Partners is an independent asset management company dedicated to executing and managing infrastructure investments for institutional investors under a long-term partnership approach. Founded in 2015, Arjun now manages €3.5 billion of capital across 15 investments.
For any further information, please contact:
Copenhagen Infrastructure Partners
Investor Relations – Kelly Bork
+45 70 70 51 51