FMO, the Dutch business development bank, has signed a $138 million investment agreement with a dedicated investment vehicle created by Copenhagen Infrastructure Partners (CIP) to support the development of large-scale renewable energy projects in high-growth markets.
FMO's financing is complemented by an equivalent equity commitment of $138 million . This co-investment vehicle will invest alongside the Copenhagen Infrastructure Growth Markets Fund II (GMF II), managed by CIP, in renewable energy projects, primarily in India, the Philippines, Vietnam, Mexico, and other eligible markets. In total, FMO and CIP have jointly contributed an additional $276 million in capital to GMF II's energy infrastructure investments.
CIP is a leading global fund manager and investor in energy infrastructure. Founded in Denmark, CIP has strengthened its presence in the Netherlands since 2019, particularly through its Growth Markets strategy. CIP is also actively involved in the Dutch energy transition through Zeevonk, its joint venture with Vattenfall, which is developing an integrated offshore wind and energy project in the Dutch North Sea.
The financing will support a diversified portfolio of renewable energy infrastructure , including offshore and onshore wind, solar power, and battery energy storage systems. FMO has classified 100% of its investment as green, reflecting its contribution to mitigating climate change by increasing the deployment of renewable energy capacity.
The transaction utilizes a specific investment structure that allows FMO to provide financing to an investment vehicle operating alongside GMF II. By combining FMO's financing with a matching commitment, this structure frees up an additional $276 million of capital for the development and construction of renewable energy infrastructure in FMO's markets.
GMF II focuses on large-scale investments in energy infrastructure in select emerging markets in Asia, Latin America, and EMEA. The fund recently closed its fundraising period with approximately $3 billion in commitments for the fund and its associated vehicles, including those mentioned above. At the time of final closing, GMF II had already committed $1.6 billion across nine investments. Its portfolio consists primarily of renewable energy generation and energy storage projects.
Juan José Dada, co-head of investments at FMO, stated : “The expansion of renewable energy in high-growth markets requires both significant capital and financing structures that can respond to the realities of complex infrastructure projects. Through this alliance with CIP, FMO combines its financing with CIP’s investment capacity to support a diversified portfolio of renewable energy projects in markets where demand for reliable, low-carbon energy continues to grow.”
Niels Holst, partner and co-head of Growth Markets Funds at CIP, stated: “We are delighted to welcome FMO as an investor in our Growth Markets Fund II. FMO is one of the world’s leading development finance institutions in the markets where GMF invests and therefore brings an excellent combination of capital, extensive knowledge, and direct experience. This innovative investment structure expands the investment capacity of GMF II, facilitating the development and delivery of additional cost-effective renewable energy capacity in new projects. We look forward to continuing to build and strengthen this strategic partnership with FMO.”
This transaction is expected to contribute to climate change mitigation by increasing renewable energy capacity in its target markets and to contribute to SDG 13, Climate Action.