Norwegian sovereign wealth fund Norges Bank Investment Management (NBIM) will commit 900 million euros (US$1.01 billion) to CI V, the fifth flagship renewable energy fund of investment firm Copenhagen Infrastructure Partners (CIP).
The move will allow NBIM to invest in renewable energy projects at the development stage, Mie Holstad, chief investment officer for real assets at the wealth fund, says in a statement on August 26.
The CI V fund invests in offshore and onshore wind, solar farms, grid and distribution, as well as storage. Its investments will be equally split among three regions: North America, Western Europe, and developed countries in Asia Pacific.
“The investment is a valuable addition to the portfolio we are currently building. It will provide further investment possibilities and exposure to other parts of the value chain, as well as the opportunity to continue building knowledge and experience with new markets and technologies,” Holstad says.
“We have worked for a long time to map out the investment risks and non-financial risks and are pleased with our choice of CIP as a partner…Our evaluations have shown that CIP has created value for investors in an open and responsible way,” she adds.
NBIM is the world’s largest sovereign wealth fund, with $1.7 trillion of assets under management as of end-June.