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Unlisted renewable energy fund national first

Unlisted renewable energy fund national first

Financing large-scale renewable projects throughout Australia has been made possible with the nation’s first unlisted renewable energy fund.

Firms: Allens (AGL Energy Ltd); King & Wood Mallesons (QIC Global Infrastructure Fund)

Deal: AGL Energy (AGL) has set up an unlisted renewable energy fund, with an $800 million investment from QIC Global Infrastructure Fund (QIC).

Value: $1 billion AUD

Area: Finance

Key players: Allens partner Anna Collyer led the team advising AGL.

KWM advised the QIC and its consortium, led by partners Craig Rogers, Roderick Smythe and Diana Nicholson. Senior associates Sharron Anderson, Carola Toledo Silva, Jack Hill and Theadora Tsangari assisted with the deal.

Deal significance:

Integrated energy company AGL has established the $1 billion Powering Australian Renewables Fund (PARF), with $200 million in cornerstone equity.

QIC joined the fund as AGL’s equity partner, on behalf QIC clients the Future Fund and a consortium of QIC Global Infrastructure Fund investors. The QIC consortium contributed $800 million.

The unlisted renewable energy fund is an Australian first and will enable financing for large scale renewable project investments across the nation. The fund comprises $1 billion in equity and $2 billion in debt.

PARF has set a 1,000 MW capacity target which it intends to achieve by investing in a mix of renewable technologies across Australia, according to Allens partner Anna Collyer.

Ms Collyer (pictured) described the opportunity to establish the “innovative investment vehicle” as an “exciting project for the Allens team”.

“The Allens team has included a mix of energy and funds lawyers,” she said.

KWM advised QIC and the consortium on all aspects of the fund establishment and transaction structuring.

Commenting on the deal, KWM partner Craig Rogers said: “We are very pleased to have supported QIC and the consortium on this innovative and landmark investment which will enable them to enter the renewable energy market and further diversify their respective investment portfolios.”

 

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