Ireland’s Green Asset Managers win €3bn in new funds in 2013

Charlie Reid

Blackrock Renewable Power’s Charlie Reid, speaking on an Irish green asset management panel at Responsible Investors European Summit, this Summer.

12 December 2013

—160 new jobs announced at the Sustainability Gathering—

Irish Minister for Jobs, Enterprise and Innovation Richard Bruton TD, today, (Thursday, December 12) welcomed the announcement at the Sustainability Gathering that Ireland’s ‘green’ asset managers secured more than €3 billion innew funds during 2013.

‘Green’ asset management refers to physical and financial assets in the green economy and includes investment in the water and renewable energy sectors.

As a result, more than 40 jobs were created by Power Capital,

BNRG, Mainstream and Gaelectric alone during the year. And, it is anticipated that this €3 billion investment will create some 120 new construction jobs over the next two years.

Irish companies won the investment for funds and renewable projects they are spearheading both in Ireland and across the globe. “This demonstrates Irish innovation and leadership in the moves to a low carbon economy,” said Minister Bruton.

Addressing more than 300 professionals from the green economy in areas from policy, finance and enterprise at Dublin Castle, Minister Bruton today said: “The Government has ear-marked the Green Economy as a core area for Irish economic recovery and growth as outlined in my own department’s policy document Delivering our Green Potential.

“In fact we are launching our progress update on that very policy document here today at the Sustainability Gathering.”

Stephen Nolan, Chairperson, Sustainability Gathering, said the Government had created the conditions, which allowed these Irish companies to flourish. “It is no surprise that Forbes in recent days ranked Ireland best country for business.

“Green International Financial Services Centre (GIFSC) has a target of increasing environmental assets under management or serviced from Ireland from today’s $20 billion to $200 billion by 2017,” explained Nolan. GIFSC is Ireland’s public/private initiative to position and promote Ireland as a world- leading centre for environmental finance.

Mr Nolan went on to explain: “This target is achievable due to the combination of two additional key factors – a world class renewables and cleantech enterprise sector and the existence of a world class international financial services centre. This combined expertise is what sets Ireland apart from other competitors.”

There were a number of other announcements made at the Sustainability Gathering.

Eddie O’Connor, Founder and CEO Mainstream Renewable Power revealed that the company had launched Mainstream Capital in order to gain access to capital and cheaper rates.

And, SCDL announced that it was the preferred bidder to manage the government’s €70 Irish efficiency fund which would see €35 million investment from the State matched by the world’s largest Government-backed energy efficiency fund manager.

ENDS

 

NOTES TO EDITORS

 

Some of the investments made into Irish asset managers in 2013

 

·      Mainstream Renewable Power alone has close to €2 billion invested in its projects in Chile and South Africa as well as an equity investment of €100 million from Japanese investment bank, Marubeni. Eddie O’Connor founded Mainstream, which is focused on the development, construction and operation of generation assets, in early 2008 following the sale of Airtricity.

·      Another major player is Blackrock’s Renewable Energy, which was founded in 2011. Its parent has $4.23 trillion under management in pensionfunds, insurance companies, sovereign wealth funds and individuals. BalckRock chose Ireland for its renewable fund BlackRock Renewable Power and has raised an estimated  €400 million in 2013.

·      Kleinwort Benson Investors, a specialist asset management firm founded and based in Dublin, was one of the first providers of environmental equities globally. It saw its assets grow by €250 million in 2013.

At the start of 2013, Kleinwort Benson Investors had €680 million worth of assets under management in its environmental equity strategies. The latest figures show that had grown to €928 million by the end of September.

·      BNRG Renewables is an international renewable energy development company, specialising in developing utility-scale solar PV projects. Based in Dublin, the company has projects under development in seven countries and its work covers all aspects of development including: site assessment, obtaining planning and grid connection rights, construction management and long-term asset management.

The company started business in 2007 in Greece and was also active in Bulgaria and Romania. It went into the UK in 2010 and which now represents it’s biggest core market. It has expanded into the Caribbean Basin, Latin America, west and east Africa and southern euro niche markets.

During 2013, the asset value of the constructed projects in the UK alone was e80 million.

·      John Mullins’ company Amarenco was launched during the year and is well on its way to raising up to €150 million.

The company creates the pipeline, raises the capital to purchase the plants and manages the assets on behalf of the investors.

·      Gaelectric, which develops and operates wind and energy storage projects in Ireland, the US and the UK, announced that it had agreed in excess of €90 million in additional financing for its business.

This includes €30 million from BlueBay Ireland Corporate Credit and €56 million from German landesbank, Nord/LB, to finance the build out of Gaelectric’s 42 MW wind farm at Dunbeg in County Derry.

It also announced that Proventus Capital Partners had increased its existing portfolio finance facility with Gaelectric by €6 million. This followed €65 million in debt finance that was raised earlier this year for the development of its near-term pipeline of 165MW of wind energy projects in Ireland.

  

FOR FURTHER INFORMATION

 

Angela Madden,

Tempus Media:

angela@tempusmedia.ie

086 773 2023

 

or

 

Kathleen Barrington

Tempus Media

kathleen@tempusmedia.ie

086 171 2241

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