Swedish ICMIF member Folksam has announced an investment of SEK 3 billion (USD 274 million) in the Growth Markets Fund II of Danish fund manager Copenhagen Infrastructure Partners (CIP). The fund invests in the energy transition in the form of onshore and offshore wind power assets, solar farms and energy storage in high-growth, middle-income countries. The Fund is expected to add 10 GW of green energy to the electricity grids and reduce over 10 million tonnes of carbon dioxide emissions per year.
Rebecka Elkert, Head of Alternative Investments at the Folksam Group said: “The Fund specialises in successfully developing large-scale renewable energy projects and in this fund focuses on emerging economies such as Chile and Vietnam, countries that are currently largely dependent on fossil fuel imports in their energy supply. This type of investment gives these economies cheaper energy sources, greater independence in energy supply, and every Krona invested makes almost three times more difference in reduced carbon dioxide emissions compared to if the investment had been made in more developed markets. The investment diversifies the portfolio and helps to increase the expected return.”
Christina Grumstrup Sørensen, Senior Partner at Copenhagen Infrastructure Partners added: “We are grateful that the Folksam Group has chosen to expand its partnership with CIP by investing in Growth Markets Fund II. Developing large-scale renewable energy projects is especially important in fast-growing middle-income countries as energy demand is high and cost-effective renewable technologies make a big difference. Growth Markets Fund II is expected to add 10 GW of state-of-the-art green energy to the grid, avoiding over 10 million tonnes of carbon emissions per year while promoting both local investment and job creation, and delivering attractive risk-adjusted returns to our investors.”
Investing companies in the Folksam Group are:
KPA Occupational Pension Insurance SEK 2100 million
Folksam Occupational Pension SEK 800 million
Consumer Co-operative Pension Foundation SEK 100 million
