Eiffel Investment Group and European Investment Bank (EIB) have announced the launch of the Eiffel Energy Transition fund with the support of a number of leading institutional investors.
Eiffel Energy Transition finances the green economy and energy transition in France and Europe. It provides an unprecedented response to a crucial need of the sector, by providing bridging funding, before long-term financing is put in place.
The companies to which the fund lends are renewable energy developers (photovoltaic, wind, biogas, biomass...) and operators of energy efficiency (electricity storage, thermal renovation of buildings, low energy lighting ...) . The financing needs are considerable given the massive investments planned in the coming years, both in terms of renewable energy production and energy efficiency solutions.
The fund supports these needs with an original offer: the granting to developers of short-term loans, pending the establishment of long-term financing for their projects. The main interest for borrowers is to immediately release equity without waiting for long-term refinancing of their projects. This allows them to develop more projects, redeploying their own funds to new opportunities.
The EIB's participation in this fund (€ 40 million-US$43 million) also benefits from the support of the European Investment Fund (EFSI) - the central element of the European Investment Plan, more commonly referred to as the Juncker Plan - with the key For Eiffel Investment Group, the granting of financial terms adapted to the sector and the nature of the investment. With this new funding, the Juncker plan continues to grow in France with 60 approved operations, which are expected to generate an additional 22 billion investments.
Kramer Levin Naftalis & Frankel advised on the formation of the Fund