SEB Nordic Green Energy Fund launched in April 2023
Interview with Elin Löfblad, Portfolio Manager and Nicklas Sörensen, CEO, Locus Energy.
SEB Nordic Green Energy
A renewable energy fund enabling energy transition.
SEB Nordic Green Energy Fund is focusing solely on direct investments in renewable energy infrastructure assets in the Nordics.
Investments will be made in geothermal energy systems, hydropower plants, solar energy, wind energy and cogeneration/Combined Heat & Power, both through new construction and by upgrading existing facilities to increase efficiency and energy output. The fund is open for Nordic and German institutional investors with an investment horizon of more than 15 years and will be closed-end.
SEB Nordic Green Energy Fund in short
- Direct investments in renewable energy assets in the Nordics.
- The fund is classified under EU Sustainable Finance Disclosure Regulation as an Article 9 fund, a fund that has sustainable investment as its objective.
- Open for Nordic and German institutional investors.
- 15-year investment horizon.
- Targeted size (equity): SEK 10bn (within 5 yrs).
SEB Nordic Green Energy Fund was created to enable an accelerated transformation of the energy sector by developing, acquiring, and integrating smaller energy assets into larger portfolios and investing in new technology to increase energy output as well as to meet modern ESG standards and environmental requirements.
Smaller scale local assets for green energy generation have a key role to play in a successful transformation of today’s energy landscape into a more sustainable, resilient, and efficient energy system that can deliver more power and thereby enable the needed electrification of industry and transportation ty.
Already today, these assets represent a significant part of the energy production in the Nordic countries. The fund offers an attractive risk-return proposition, inflation protection, low volatility and long-term alternative investment opportunity.
Renewable energy asset investments in focus
Focus on the Nordic region, investments could be both in weather dependent energy (e.g. solar and wind power), plannable energy production (e.g. hydropower) and any infrastructure, e.g. local grids needed to enable power production and transfer.
Outside of its main strategy, the Sub-Fund may opportunistically invest up to thirty percent (30%) of its assets into other energy investments, e.g. energy storage systems.
Investment opportunities are sourced across five energy sources
Geothermal heating
Develop energy systems for properties that will be leased to the property owners.
Solar power
Investments in solar energy, both dedicated solar parks and rooftop installations.
Hydro power
Investments in existing hydropower facilities that will be upgraded by the fund.
Wind power
Investments in existing wind power sites that will be upgraded by the fund.
Combined heat & power
Investments in existing combined heat and power plants with potential for increased power generation.
Why invest in the SEB Nordic Green Energy Fund?
- Get exposure to renewable energy infrastructure assets in the Nordic countries through a well-diversified portfolio of investments.
- Get access too small on small / mid-sized assets that typically are not in focus for larger infrastructure funds.
- Help alleviate the energy shortage in Northern Europe – the fund will invest in new energy production and in upgrading older energy plants to increase energy output.
- Increasing energy demand, combined with energy shortage and fossil fuels being phased out, calls for large investments in renewable energy. There is therefore an opportunity for investors to contribute with their capital to finance, as well as to gain exposure to, the renewable energy transition.
- Investors will fulfil the local need for financing and knowledge transfer to local municipalities and companies, to accelerate the transition to a renewable energy-based society.
Transition in numbers - how we measure our progress in the fund
ESG matters is an integral part of the fund’s strategy. All investments will have a purpose of increasing the amount of renewable energy in the Nordic region, whether if it’s establishing a new solar park, to acquire and upgrade a hydropower plant to increase its energy output, or to invest in a grid to enable the transfer of green energy.
The fund is classified as an article 9 fund (a dark-green fund according to the SFDR regulation issued by the EU, with sustainable investments as its objective), investing in companies aiming to solve the global climate challenges.
The fund will measure the amount of renewable energy created by its investments in order to secure that its targets are met. The fund will report according to the EU Taxonomy.
Furthermore, the fund will contribute to SEB Investment Management’s overarching aim to align investments with the Paris Climate Agreement and to reach net zero greenhouse gas emissions from its investments by 2040.
Our strategic partners
Locus Energy AB
SEB works with Locus Energy where they have a particular focus on the acquisition and development of existing assets in hydropower, wind power, bio-fired combined heat and power plants and distribution networks. Visit Locus Energy
Greenergy
Greenergy is a Subsidiary to the technical consultancy company Bengt Dahlgren AB. This company assists the fund in building local renewable energy for property owners, municipalities and industries in the Nordics. Greenergy holds the overall commitment from project idea to construction, operation and management, and focuses on geothermal energy, solar energy, hydrogen and thermal power. In exchange, the customer commits to buying the energy produced at a predictable price that includes investment cost and operation. Visit Greenergy
Granlund Oy
The Finnish company Granlund fulfils the same role as Greenergy on the Finnish market, but all projects are coordinated by Greenergy on a Nordic level. Visit Granlund
Asplan Viak AS
Norwegian Asplan Viak fulfils the same role as Greenergy on the Norwegian market, but all projects are coordinated by Greenergy on a Nordic level. Visit Asplan Viak
Contacts
Richard Gavel
Portfolio manager, Real Estate & Infrastructure
SEB Investment Management
richard.gavel@seb.se
Björn Arvidsson
Portfolio manager, Real Estate & Infrastructure
SEB Investment Management
bjorn.arvidsson@seb.se
Hans Hellenborg
Institutional Sales
SEB Investment Management
hans.hellenborg@seb.se
Important Notice
This information does not constitute an offer to sell or the solicitation of an offer to purchase any securities. Any such offer or solicitation offer may only be made at the time eligible investors receives confidential commitment agreements, prospectuses, articles of association (“Fund Documents"), which includes, among other things, information with respect to risk factors.
The Fund is eligible and directed to a limited number of professional investors only. The distribution of this document in certain jurisdictions may be restricted by law. Any person who comes into possession of this information are required to inform themselves about such restrictions.
The value of the investments may go down as well as up and an investor may not get back the amount invested. Past performance is not indicative of and not a guarantee of future results.
An investment in the Fund is suitable only for certain sophisticated investors who have no need for near-term liquidity. Such an investment provides limited liquidity because interests in the Fund are not freely transferable and may be transferred only under the limited circumstances set forth in the Fund Documents. Please refer to the contact persons below for further information.