• Target size of the EB Clean Energy Debt is 200 million euros
• Investment in renewable energy projects through a mix of senior and subordinated financing
• Focus on established technologies

Kassel, August 29, 2023: Asset manager EB – Sustainable Investment Management GmbH (EB-SIM), which specializes in sustainable investments, is contributing to the financing of the energy transition with another new fund. EB Clean Energy Debt has a target volume of EUR 200 million and focuses on debt investments primarily in Germany and France. The fund is classified in accordance with Article 9 of the EU Disclosure Regulation (SFDR).

EB Clean Energy Debt will invest at least 70 percent of its capital in individual projects or project portfolios in the areas of wind, hydropower and solar energy. The plants must either already be in operation or at least be ready for construction. The fund management can invest a maximum of 30 percent in other clean energy projects such as energy storage and grids. Due to the focus on senior and subordinated loan financing, the target investments are generally below the risk curve of equity investments. Around 90 percent of the interest rates are fixed and can deliver stable returns on capital for investors in EB Clean Energy Debt. In addition, the focus on projects with calculable revenue streams such as feed-in tariffs or long-term purchase agreements is intended to reduce market risks.

The management is aiming for a total return of at least 6% after costs. In addition, the aim is to achieve ongoing income distributions of at least 5 percent per year from the end of the investment phase^.1

Dr. Bernhard Graeber, Managing Director and Head of Alternative Assets, says: “A secure electricity supply at predictable prices from renewable energies is essential in order to achieve the goals of the Paris Agreement and at the same time provide security of supply for the economy and the population. Germany and France, for example, want to rely entirely on renewable energy sources for power generation by 2050. However, the share is currently only 42.8% and 24.5% respectively^.2 Massive investments are therefore still required to achieve full supply. This is where we want to make a contribution together with our investors. For them, private debt is also an interesting niche that offers an attractive risk/return profile.”

The fund term is 12 years and is fixed from the end of the maximum three-year investment phase. The distribution of the fund volume across ten to 15 financing transactions, in which a maximum of 20% may be held in an operating business unit, ensures balanced diversification.

Key Facts:
EB Sustainable Funds Luxembourg S.A., SICAV-SIF – EB Clean Energy Debt

Fund structure:
Closed-end Luxembourg special investment fund (regulated SICAV-SIF)
^{Return/distribution1}:
Target return (IRR) of at least 6% after costs
Ongoing income distributions of at least 5% planned from the end of the investment phase
Term:
Investment phase: 3 years
Fund term: 12 years from the end of the investment phase Currency Euro
Regulatory / Acquirability:
Classification of the fund in accordance with Article 9 of the EU Disclosure Regulation (SFDR)
Fund can be acquired by VAG, Solvency II and Basel III investors, an acquisition report will be provided
Planned portfolio allocation:
Primary and subordinated debt investments in the clean energy sector
Technology diversification:
Min. 70 %: Solar energy, wind and hydropower
Max. 30 %: other clean energy projects (e.g. storage, grids)
Target countries:
Focus on Germany and France: at least 70%
as a supplement Other EU countries as well as Switzerland, Norway and the UK: max. 30%
Reporting: quarterly reporting, standard market reporting scope

^{1 Calculation of returns based on example portfolio. Future distributions and returns are subject to uncertainty and cannot be guaranteed. The forecasts shown are not a reliable indicator of future performance.
2 Source: spektrum.de (as at: 2022)}