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BNP Paribas Launches New Climate Impact Infrastructure Debt Fund – ESG Today

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BNP Paribas Launches New Climate Impact Infrastructure Debt Fund

Mark Segal

December 13, 2023

Paris-based global bank BNP Paribas announced today the launch of BNP Paribas Climate Impact Infrastructure Debt, a new fund aimed at financing climate change mitigation, and supporting energy transition projects across continental Europe.

The fund is targeting €500-750 million from institutional investors, including a seeding commitment from BNP Paribas’ insurance business BNP Paribas Cardif.

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.”

The new initiative is being launched in close collaboration with BNP Paribas Asset Management (BNPP AM), BNP Paribas Corporate & Institutional Banking (CIB) and BNP Paribas Cardif, providing complementary expertise to offer financing solutions to projects and companies involved in energy transition and climate change mitigation. The fund will be managed by BNPP AM’s Private Assets division, with BNP Paribas CIB’s Low Carbon Transition Group bringing its capabilities in advising on and originating low carbon assets.

Séverine Mateo, Global Head of BNP Paribas’ Low-Carbon Transition Group, said:

“Combining BNP Paribas’ origination, distribution and investment capabilities within low carbon transition is perfectly aligned with the Group’s strategy to accelerate the transition to a lower carbon and more sustainable economy.”

Classified as Article 9 under the EU’s SFDR regulation, and with an investment grade profile, the new fund aims to invest in continental European countries, supporting energy transition projects focusing on renewable energy, clean mobility and the circular economy, including new sectors such as batteries, hydrogen and carbon capture. BNP Paribas said the three investments have already been secured for the fund, including 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 BNPP AM Private Assets, comments:

“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.”

Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.

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