• Evangelische Bank and subsidiary EB-SIM support the church and social economy on their path to climate neutrality
• Impact fund “EB Kirchlicher Energiekreislauf” finances wind and solar projects on properties owned by churches and social organizations
• First projects initiated with Braunschweig regional church

The social economy generates around 14 million tons of CO₂ every year. The pressure to decarbonize is growing – many institutions want to take action, but there is a lack of capital and specialist expertise. On the other hand, churches and their social institutions have a large amount of land that can be used to generate renewable energy. The social economy’s potential for photovoltaics on roof surfaces alone is estimated at 4 terawatt hours – enough to cover 70 percent of its electricity needs.

The “EB Kirchlicher Energiekreislauf” as an answer

EB-SIM is closing this gap with the newly launched “EB Kirchlicher Energiekreislauf” (EB KEK ) fund. The fund pools investments in photovoltaic and wind projects and turns church and diaconal institutions into active co-creators of the energy transition. “On the one hand, we give church investors the opportunity to invest in the energy transition in the church and social economy. At the same time, we provide comprehensive support to landowners from the church and social economy in the development of wind and solar projects on their land,” explains Dr. Bernhard Graeber, Managing Director of EB-SIM.

The fund meets the highest sustainability standards within the meaning of Article 9 of the EU Disclosure Regulation (SFDR). It therefore meets the increasing demands of institutional investors for sustainable, regulatory-compliant investment opportunities. The investment focus is on photovoltaic and wind energy plants with a connection to the church and the social economy. The new fund is characterized by the following key data:

• Long-term predictable returns for church investors
• Cost reduction and CO₂ reduction for social facilities
• Targeted distribution: approx. 5 percent p.a.[1] (after investment phase)
• Forecasted target return (IRR): 6 to 7 percent p.a. after costs[2]
• Structure: Open-ended fund with unlimited term, annual redemption option (after minimum holding period)
• Capital structure: Combination of equity and debt capital, broad diversification across the project development, realization and operating phases

Strategic support and initial projects

Cooperation with the Braunschweig regional church (Lower Saxony) shows that the new concept works in practice: A wind farm with up to 14 wind turbines and a total capacity of around 100 megawatts is to be built on their property. It will supply 250,000 megawatt hours of electricity per year. A solar park on church property is also already being planned. It will have a peak output of over 27 megawatts and is expected to generate 30,000 megawatt hours of electricity per year.

Dr. Jörg Mayer, Head of the Finance Department of the Evangelical Lutheran Church in Braunschweig, explains: “In EB-SIM, we have found a competent partner who has already provided us with extensive advice in the early phase of the site analysis. We are delighted that we have now been able to move two very specific projects into the project development phase together.”

Dr. Bernhard Graeber, Managing Director of EB-SIM, adds: “We see ourselves as a strategic partner to the social economy and the church. With our ‘EB Church Energy Cycle’ fund, consulting tools and project experience, we not only want to support the energy transformation, but also actively shape it.”

“We very much appreciate the trust placed in us by the regional church in Braunschweig,” adds Florian Lüders, Head of Renewable Energy Project Development at EB-SIM. “We are in contact with other interested parties across Germany who are asking themselves whether their land is suitable for renewable energies. We are delighted by the high demand and this confirms that we are on the right track.”

Risks of the “EB Kirchlicher Energiekreislauf” fund

• Illiquidity of real asset investments
• There are fundamental political and regulatory risks in the energy sector
• Elementary risks in the area of investments
• Economic stability of the project depends at least in part on the electricity market

Legal notice

This is a marketing communication and is directed exclusively at persons who are resident or ordinarily resident in Germany. The content is neither investment advice/recommendation nor an offer or advice to buy/sell the relevant fund. Likewise, the information does not constitute an investment strategy recommendation within the meaning of Section 85 WpHG. Information including notes on opportunities and risks as well as sustainability-related features can be found in the sales documents, which you can obtain free of charge from EB-SIM.

[1] Calculation based on sample portfolio. The forecast shown is not a reliable indicator of future performance.

[2] Calculation based on example portfolio. The performance shown is a forecast and not a reliable indicator of future performance.