Octopus, the largest commercial solar energy investor in Europe, today announces a new partnership with Korea Investment & Securities (KIS), the Renewable Energy Income Partnership II (REIP II), that will deploy £107m towards Octopus’ renewable assets strategy. REIP II is part of Octopus’ institutional investment strategy, bringing the company’s total AUM of institutional funds to £2.3bn.
Through equity and senior debt, KIS underwrote the whole transaction which will acquire and finance a portfolio of 15 UK solar assets. KIS will hold their equity investment and the senior debt will be acquired by the three major Korean insurance companies, Samsung Fire & Marine Insurance, KB Insurance and Hyundai Marine & Fire Insurance.
In a sign of confidence in the UK renewables market, this is the first major investment in UK Renewables Obligation Certificate subsidised energy assets from Korea.
REIP II is a 25-year vehicle with returns made up of UK government subsidies and power prices, delivered through fixed income.
REIP II is the second in a series of asset-based partnerships managed by Octopus, with a focus on Renewable Energy infrastructure, and follows REIP I, a £300m fund backed by one of the UK’s largest institutional investors.
Octopus plans to build further bespoke renewables portfolios, to suit institutional investors’ requirements.
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