Stockholm (NordSIP) – BlueOrchard announced the first closing of the BlueOrchard Sustainable Assets Fund (BOSAF), which will invest in green infrastructure projects in emerging and frontier markets. BlueOrchard is a leading impact investment manager and a member of the Schroders Group.
BOSAF enjoyed the support of prominent European investors, including Nordic asset owners such as Finland’s Church Pension Fund and YLE, Pension Fund of Finnish Broadcasting Company. BOSAF is available to institutional investors across different jurisdictions.
“There is urgent need to accelerate the transition towards a low carbon economy. With a net zero target set by 2035, we have a strong focus on increasing investments in climate solutions. We are very pleased that we have found an experienced partner in BlueOrchard to address unmet climate finance needs in particularly those regions of the world that are the most vulnerable,” said Ira van der Pals, CIO at Finland’s Church Pension Fund.
BOSAF focuses on climate change mitigation and will provide debt financing to projects in renewable energy, energy efficiency, and clean transportation with demonstrable social, environmental, and economic impact alongside attractive returns.
“We strongly believe in the concept of profit with a purpose. We are proud to partner up with the leader in this field, in order to invest with a measurable impact and to address crucial climate-related investment gaps in emerging markets,” added Topi Piela, CEO of YLE, Pension Fund of Finnish Broadcasting Company.
BOSAF will work to close the significant gap that remains for the financing of mid-sized projects in key emerging and frontier markets. The fund will focus on investments in projects which, despite not being massive in scale, have the potential to make an impact on communities for generations to come. The Fund’s clear and measurable impact targets are aligned with the UN’s Sustainable Development Goals (SDGs).
“Around 75% of the UN SDGs investment gap is made up of critical infrastructure projects in growth markets. We are excited to contribute to closing this gap by leveraging BlueOrchard’s 20-year history as a leader in emerging markets impact finance. The strong support from Nordic investors in this endeavour is great news,” Felix Hermes (Pictured), Head of Private Equity and Sustainable Infrastructure at BlueOrchard concludes.