Hermes Infrastructure has announced that on behalf of Hermes Infrastructure Fund II LP (HIF II), it will invest in an 813 megawatt (MW) portfolio of five Swedish onshore wind farms in conjunction with consortium partner CGN Europe Energy (CGNEE). HIF II will take an initial 20% equity ownership stake and CGNEE has underwritten the remaining 80%. Aquila Capital will retain an ongoing role in relation to the portfolio.
The portfolio comprises two operational onshore wind farms with an aggregate capacity of 216MW and three onshore wind projects in late-stage construction with an aggregate capacity of 597MW, all located in Sweden. The portfolio is estimated to offset 156,000 tonnes of CO2 per annum and contributes to a number of the United Nations Sustainable Development Goals.
Completion of the two operational wind farms occurred on Monday 16 September and the remaining three are due to complete as they commence operations, expected by Q1 2020.
The portfolio benefits from a comprehensive contractual package that includes robust long-term, fixed-price, power-purchase agreements that limit exposure to merchant power prices, and agreements with world class suppliers for operations and maintenance services.
Peter Hofbauer, Head of Infrastructure, Hermes GPE, said: “We are very pleased to announce this transaction for a high-quality portfolio of wind farms in Sweden in conjunction with our strategic partner, CGNEE. Once fully operational, the portfolio will increase renewable-energy generation capacity already owned and managed by Hermes Infrastructure on behalf of a range of UK and international institutional investors to more than 1 gigawatt.”
The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other Hermes communications, strategies or products.
Embedded in its activities lies a passion for real assets and living ESG, better every day.
 References to “Hermes Infrastructure” are to Hermes GPE LLP trading as Hermes Infrastructure
 Based on current Swedish energy mix. Assumed CO2 emissions in Sweden of 60g/kWh and total annual expected generation of 2.6TWh.
 As at 31 December 2018
 Please note the total AUM figure includes £6.6bn of assets managed or under an advisory agreement by Hermes GPE LLP (“HGPE”), a joint venture between Hermes Fund Managers Limited (“HFM”) and GPE Partner Limited. HGPE is an independent entity and not part of the Hermes group. £23.6m of total group AUM figure represents HFM mandates under advice. Source: Hermes as at 30 June 2019
For further information, please contact:
Hermes Investment Management
+44 (0)20 7680 2218
About Hermes Infrastructure
HIF II is managed by Hermes GPE LLP which is a joint venture between Hermes Fund Managers Limited, GPE Partner Limited and HGPE Capital Limited.
Hermes Infrastructure is a specialist investment manager providing institutional investors with cost effective access to high quality direct equity investment opportunities in infrastructure across Europe and other OECD jurisdictions. Established in 2011, originally formed to consolidate and manage the BT Pension Scheme’s direct infrastructure investment programme, we now manage nearly £4.2bn of committed and invested capital including £2.6bn of existing investments, offering our expertise, experience and ability to deliver target returns responsibly to a range of institutional clients.
About Hermes Investment Management
Hermes Investment Management, a Federated Investors company, provides world-class active investment management and stewardship services. Hermes, headquartered in London, manages £36 billion in assets* and offers a broad range of specialist, high-conviction investment strategies spanning listed equities, credit, real estate, infrastructure, private debt and private equity. Hermes’ strategies focus not just on financial results, but also on delivering outcomes beyond performance: holistic returns that consider impacts to society, the environment and the wider world. In Hermes EOS, the company offers one of the industry’s leading engagement resources, representing £501 billion of assets. For more information, visit www.hermes-investment.com.
* Please note the total AUM figure includes £6.6bn of assets managed or under an advisory agreement by Hermes GPE LLP (“HGPE”), a joint venture between Hermes Fund Managers Limited (“HFM”) and GPE Partner Limited. HGPE is an independent entity and not part of the Hermes group. £23.6m of total group AUM figure represents HFM mandates under advice. Source: Hermes as at 30 June 2019
About CGN Europe Energy
CGN Europe Energy is a subsidiary of China General Nuclear Power Corporation and a leading developer and operator in the renewable energy market in Europe. CGNEE owns a significant existing renewable energy generation portfolio with its European renewable assets representing approximately 1.6GW of generating capacity.
About Aquila Capital
Aquila Group is an experienced and long-term investor in essential, real asset investments. Founded in 2001 by Dr. Dieter Rentsch and Roman Rosslenbroich, the Group currently manages USD 9.3 billion for its clients worldwide (as at 31.03.2019).
The business centres on secular and sustainable trends in renewable energy, social housing, green logistics, infrastructure, timber and agriculture as well as niche financial market strategies. Dedicated specialist investment teams with entrepreneurial mindsets draw on their sector networks and experience to screen, develop, finance, manage and operate investments along the entire value chain.
Local, on-site management teams and a boots on the ground philosophy are central to the company’s operations, with 14 investment offices in 11 countries. Comprehensive operational capabilities, more than 300 employees at group level, intensive asset management and a passion for detail ensure asset and product performance as well as the timely deployment of capital.
Aquila Group believes in stringent corporate governance. With its two AIFMs in Luxembourg and Germany, it is subject to the highest European regulatory standards.