Nordic power producer Ilmatar has secured a debt financing package of €500m in a transaction led by Copenhagen Infrastructure Partners (CIP) through its Green Credit Fund 1.
Kommunal Landspensjonskasse (KLP), P Capital Partners (PCP) and accounts managed by CIP also participated in the package, which comprises a day one committed tranche of €325m and an uncommitted increase option of €175m.
The deal will further accelerate the growth of Ilmatar’s renewable energy production.
In line with company’s strategy, Ilmatar develops, constructs, owns and operates its renewable energy sites.
“This debt package strengthens our position as an independent power producer as it enables us to accelerate building renewable energy production in Finland and Sweden in accordance with our strategy,” said Ilmatar’s chief financial officer Antti Sallila.
“We are pleased to partner with CIP and PCP in executing the green transition in the Nordics.”
With this financing from CIP, its co-investors and PCP, Ilmatar has secured more than €1bn in equity and debt funding for its growth strategy over the past five years.
By the end of 2023, Ilmatar is aiming to have commissioned six onshore wind farms and one solar array in Finland.
It has a 1GW portfolio of renewable energy in operation, under construction or in ready-to-build phases.
CIP’s Green Credit Fund 1 focuses on providing private project finance debt with subordinated risk characteristics supporting renewable energy projects in Europe, North America, and selective jurisdictions in the Asia Pacific region.
The project focus is on green and brownfield projects in renewable energy infrastructure.
“We are delighted to be partnering with Ilmatar to accelerate the development and construction of renewable energy projects in Sweden and Finland,” said partner at CIP and co-head of the CI Green Credit Fund 1 Jakob Groot.
“Ilmatar and its strong management team have a successful track record within the renewables space, and I see this transaction as a great opportunity for our CI Green Credit Fund 1 to make a meaningful contribution to the deliver the green agenda in Sweden and Finland with a very strong team.”