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November 7, 2014
The UK Green Investment Bank (GIB), leading global investment firm KKR, and specialist investment manager Temporis Capital LLP have today announced a new £200m lending programme for community-scale renewable energy projects in the UK.
This is the first time that GIB has supported the community-scale renewables sector and the first investment of KKR in the UK renewable energy sector.
GIB and KKR will each be providing up to £100m to the lending programme, which will be managed by Temporis Capital.
GIB gained approval from the European Commission in May 2014 to expand its investment mandate to include community-scale renewables, mainly small-scale hydro-electric and onshore wind projects, in response to a funding gap in the market.
Temporis expects the first project to benefit from the new lending facility will be in Scotland and for the loan agreement to be signed shortly.
Shaun Kingsbury Chief Executive, UK Green Investment Bank explained:
"Many well-structured community-scale projects have not been able to get off the ground because of a lack of long-term finance in the market. These small-scale projects can make a meaningful contribution to the UK's green economy and I am pleased that we, along with our partners KKR and Temporis Capital, will be able to provide this funding to projects which might otherwise have been locked out of the market.
"I'm particularly pleased to see new lenders, like KKR, coming to invest in the UK renewable energy market."
KKR, which is making the investment primarily from its balance sheet, has invested in renewable energy across the world, including US, Mexico, Australia, France, Italy, Spain, Portugal, and South Africa. Today's announcement marks KKR's first investment in the UK renewable energy sector.
Nat Zilkha, co-Head of Credit for KKR, said:
"We are excited to partner with Temporis and the Green Investment Bank to launch this lending platform for community-scale projects. The investment builds on KKR's view that renewable power is a critical part of the energy mix and that non-bank lending can provide capital to projects with clear tangible benefits for local communities. We look forward to providing more financing to companies and infrastructure projects in the UK."
David Watson, Chief Executive, Temporis Capital, said:
"Today's announcement represents an important milestone for the UK as we launch the first non-bank lending platform dedicated exclusively to the renewable energy sector. With the support of KKR and GIB, I am confident we will be providing much needed funding to UK community-scale wind and hydro projects."
Contacts for further information:
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com.
KKR has made several investments in wind energy, including through partnerships with Sorgenia, one of the largest Italian energy companies, for the production of wind energy in France, and with ACCIONA Energía Internacional (AEI), the international renewable energy generation business of ACCIONA Energía, with assets in 14 countries, including US, Mexico, Australia, Italy, Portugal and South Africa
Temporis is a specialist investment management firm pursuing listed equity, asset finance, debt, private equity, and infrastructure strategies solely in the sustainability sector. It invests in, builds and operates wind, solar, hydro and biomass projects in the UK and selected regions around the world. In addition to its primary investment management business, it also develops sites, advises third parties on acquisitions and sales, and administers companies owning renewable energy projects.
UK Green Investment Bank (GIB)
The UK Green Investment Bank was launched in November 2012. With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a "for profit" bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.