BaltCap Infrastructure Fund increases renewable energy portfolio by acquiring a biomass CHP in Riga region

BaltCap Infrastructure Fund increases renewable energy portfolio by acquiring a biomass CHP in Riga region


BaltCap Infrastructure Fund (BInF) has acquired 70% of shares in biomass combined heat and power plant in Riga region from Latvian company AS ENERGOECO. Highly efficient woodchip-fired CHP plant started to operate in October 2017, capital expenditure for building and launching the plant was €
17 million. The transaction is expected to close after receiving competition clearance.

The power plant is equipped with 18 MW HoSt Bio Energy Installations high-pressure water tube steam boiler and a 3.98 MW steam turbine. The plant produces electricity and provides heat to Riga district heating system.

“We have been following CHP plant development in Acone industrial park for the last two years and saw it as a technologically sound and well-executed project that perfectly fits into our portfolio. With this investment, we will get one step closer to our goal to invest at least 40% of the fund into climate change mitigation projects. This investment becomes increasingly important and urgent in the light of recently published IPCC Special Report on Global Warming,” says Šarūnas Stepukonis, BaltCap Infrastructure Fund manager.

This is the third BInF investment into renewable energy projects. In September 2017, the fund invested in a project valued at €16 million to build a biomass plant in Vilnius, and late in the year acquired Latvian biogas plant operator Anaerobic Holding for €9.45 million. Anaerobic Holding consists of three biogas plants with a total installed capacity of 4.9 MW.

BaltCap launched BInF in July 2017. The €100 million fund has a length of 20 years and it was established for investments in infrastructure development in Lithuania, Latvia, and Estonia.

Investors in the fund include all the largest pension funds in the Baltic States, a life insurance company and other institutional investors. Lithuanian, Latvian and Estonian pension funds account for 60% of investments in the BInF, marking the largest-ever commitment by local pension funds to any single fund in the Baltics to date. The European Bank for Reconstruction and Development and European Investment Bank have committed €20 million each. European Investment Bank financing is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker’s Commission Investment Plan for Europe.


For more information contact:

Sarunas Stepukonis
Partner, BaltCap Infrastructure Fund
Phone: +370 5254 6713
sarunas.stepukonis@baltcap.com
www.baltcap.com

More steam for BaltCap Infrastructure Fund: EBRD invests €20 million

The European Bank for Reconstruction and Development (‘EBRD’) commits to invest €20 million into the BaltCap Infrastructure Fund (‘BInF’). The President of EBRD, Sir Suma Chakrabarti signed the agreement today during a signature ceremony held at the Ministry of Finance of Estonia in Tallinn. With additional contribution from Citadele pension funds and existing investors, BInF has reached its hard cap of €100 million.

The President of EBRD, Sir Suma Chakrabarti said, “We are pleased to support the BaltCap Infrastructure Fund with a sizeable €20 million investment. The fund will address the scarcity of infrastructure equity funding in the region and promote the private financing of crucial infrastructure in all three Baltic States. With the fund’s strong commitment to the climate change mitigation, the Bank’s support of the BaltCap Infrastructure Fund sets an important milestone in EBRD’s promotion of green agenda in the private equity industry.”

The Minister of Finance of Estonia, Toomas Tõniste, said, “We are proud to welcome this investment in the Baltcap Infrastructure Fund, the first infrastructure fund in the Baltics with the goal to catalyse private investors to finance infrastructure projects. The fund’s investment strategy addresses the rising investment needs in the region in transport, energy efficiency, and renewable energy sectors. Last year, the new Estonian regulation for a new type of fund in the form of a limited partnership came into effect. This fund regime has been designed along the lines of the best qualities of limited partnership structures of various countries. We are glad more and more regional venture capital fund managers, including BaltCap, are using the new Estonian limited partnership type of fund.”

With €20 million equity commitment EBRD becomes the second anchor investor of the BInF together with European Investment Bank that contributed the same amount of investment last year.

“For us it was imperative to attract EBRD as one of the anchor investors of the fund, especially because of their institutional expertise and commitment to the growth of the Baltic region. We are humbled with the trust of our investors that put us in a unique position to provide unmatched long-term financing solutions for sustainable homeland infrastructure development,” says Šarūnas Stepukonis, Partner of BaltCap Infrastructure Fund.

The BInF also receives an investment from Citadele pension funds increasing total amount of the fund up to €100 million.
BaltCap launched the BInF in July last year with the expected size of €100 million. The fund invests into transport, energy and social infrastructure development across Lithuania, Latvia, and Estonia.

Since the start of operation, the fund invested €16 million into 48MW biomass plant in Vilnius, Lithuania. The plant will be built and become operational by the beginning of 2019. According to estimations, the plant will generate nearly 10% of Vilnius’ heat demand. Last year the fund also acquired 75% of Anaerobic Holding’s shares for €9.45 million. Anaerobic Holding owns and operates three biogas plants in Latvia with a total installed capacity of 4.9MW.

Investors of the BInF include all of the largest pension funds of the Baltic States, a life insurance company, and international financial institutions. More than half of the funds are raised from the pension funds based in Lithuania, Latvia, and Estonia – it is the largest combined local pension funds commitment to the Baltics-focused private equity fund to date.

 

Additional information:

Šarunas Stepukonis
Partner of BaltCap Infrastructure Fund

Phone: +370 6866 6201

sarunas.stepukonis@baltcap.com

BaltCap Infrastructure Fund acquires Anaerobic Holding

BaltCap Infrastructure Fund (BInF) has aquired 75% of Anaerobic Holding shares for €9.45 million. Anaerobic Holding owns and operates three biogas plants in Latvia with a total installed capacity of 4.9MW.

Anaerobic Holding group consists of three biogas plants with a total installed capacity of 4.9MW, namely Agro Iecava, RZS Energo and AD Biogazes Stacija, as well as two biogas raw material supply companies – BGGS Serviss and Aizkalnu Tehnika. Both of the latter secure all organic raw materials required for biogas plant operations. Before the acquisition the largest shareholder of the group’s companies has been Latvian entrepreneur Nils Aleksa, who will stay on as a joint venture partner with BInF.

‘Anaerobic Holding has developed the most efficient biogas plant portfolio in Latvia, not only generating electricity but also providing excess heat to business consumers and municipalities. This renewable energy investment fits into fund’s portfolio due to long term useful asset life that enables us to provide double-digit returns for pension funds which have invested into BInF,’ says Šarūnas Stepukonis, BaltCap Infrastructure Fund Partner.

‘BaltCap is the largest private equity manager in the Baltics with an impressive investment portfolio and significant value add. Attracting BInF with its strong institutional investor base as a long term partner in Anaerobic Holding will enable us to finance future developments in renewable energy field,’ said Nils Aleksa.

‘This is the first case in Latvia where the pension savings of a large part of the Latvian and Baltic  population will directly benefit from the investment in the local renewable energy infrastructure. We hope this will facilitate further pension saving investments in the local economies,’ comments Matīss Paegle, BInF Investment Director in Latvia.

It is the second BInF investment this year. In November the fund signed engineering, procurement and construction (EPC) contract to develop 48MW biomass plant in Vilnius. The plant should be built and become operational in the first quarter of 2019. According to estimation, the biomass plant will generate nearly 10% of Vilnius heat demand.

In July 2017, BaltCap launched BaltCap Infrastructure Fund (BInF) with the planned size of €100 million. The fund will invest into infrastructure development across Lithuania, Latvia, and Estonia.

Investors of BaltCap Infrastructure Fund include all of the biggest pension funds of the Baltic states, a life insurance company, and international financial institutions. 60% of the funds are raised from the pension funds of Lithuania, Latvia, and Estonia – it is the largest combined local pension funds commitment to the Baltics-focused private equity fund to date. The anchor investor of the fund is the European Investment Bank, which has commited to invest €20 million. This EIB support is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker’s Commission Investment Plan for Europe launched to overcome the current investment gap in the EU by mobilising private financing for strategic investments.

 

Additional information:

Šarūnas Stepukonis
Partner

BaltCap Infrastructure Fund

sarunas.stepukonis@baltcap.com

Tel.: +37068666201

Matiss Paegle

Investment Director

matiss.paegle@baltcap.com

Tel.: +37126688868

First project of BaltCap Infrastructure Fund: a EUR 16 million biomass plant

Today BaltCap Infrastructure Fund (BInF) signed an engineering, procurement and construction (EPC) contract with Axis Technologies to develop the first infrastructure project financed by BInF – a 48MW biomass plant in Vilnius. The deal has been signed in Vilnius during the Pan-Baltic Infrastructure Summit 2017.

EPC agreement, worth Eur 16 million, states that a 48MW biomass plant near Gariūnai should be built and become operational by the beginning of 2019. According to estimates, this power plant will generate nearly 10% of Vilnius heat demand.

“Advanced pipeline of potential infrastructure investments accumulated over the last few years enabled us to sign the first transaction right after the first close of BInF. This new biomass plant will change the balance of the heat supply in Lithuania’s capital – after its commissioning over half of required heat supply in Vilnius will be produced from renewable sources. The biomass plant will be built without any subsidies and it will also let to reduce heating prices and CO2 emisions in Vilnius,” said Šarūnas Stepukonis, the Partner of BaltCap Infrastructure Fund.

Heat energy in the plant will be produced by two water heating boilers of 19.5MW nominal  thermalcapacity, as well as two 4.75MW flue gas condensing economizers. A double flue gas cleaning system using multicyclone and electrostatic precipitator will be installed in the plant.

In July 2017, BaltCap launched BaltCap Infrastructure Fund (BInF) with the planned size of €100 million. The fund will invest into infrastructure development across Lithuania, Latvia, and Estonia.

Investors of the BInF include all of the biggest pension funds of the Baltics, a life insurance company and international financial institutions. 60% of the funds are raised from the pension funds of Lithuania, Latvia, and Estonia – it is the largest combined local pension funds commitment to the Baltics-focused private equity fund to date. The anchor investor of BInF is the European Investment Bank that has commited to invest €20 million. This EIB support is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker’s Commission Investment Plan for Europe launched to overcome the current invetsment gap in the EU by mobilising private financing for strategic investments.

 

Contacts for enquiries:

Sarunas Stepukonis

BaltCap
Partner of BaltCap Infrastructure Fund

Tel: +370 5254 6713

sarunas.stepukonis@baltcap.com

€100 million BaltCap fund will invest into infrastructure of the Baltic States

BaltCap, the largest private equity investor in the Baltic region, has launched BaltCap Infrastructure Fund (BIF) with the planned size of €100 million. The fund will invest into infrastructure development across Lithuania, Latvia, and Estonia.

BaltCap Infrastructure Fund will primarily focus on providing development capital for transport, energy, and energy efficiency infrastructure projects in the Baltic States.

“Infrastructure development is one of  the key priority areas for the region to improve its competitiveness and independency. Baltic countries are facing infrastructure funding gap of €6 billion over the next 5 years which is expected to become even larger post 2014-2020 EU funding program. Physical infrastructure such as electricity, heating, railways, roads, ports and airports suffer from a substantial deficit in terms of capacities and efficiencies,” says BaltCap Infrastructure Fund partner Šarūnas Stepukonis.

“With the strong support from international financial institutions and local pension funds we are able to address the infrastructure funding gap and help Lithuania, Latvia and Estonia to realise their infrastructure investments programs. It is the first time in the region when the local pension fund assets will be deployed to develop infrastructure for future generations,” added Stepukonis about the purpose to launch a new fund.

The anchor investor of the fund is the European Investment Bank, which has commited to invest €20 million into the fund.  This EIB support is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker’s Commission Investment Plan for Europe  launched to overcome the current invetsment gap in the EU by mobilising private financing for strategic investments.

Vice-President Ambroise Fayolle, whose responsibilities include EFSI, said, “Mobilising private financing for strategic investments is the main goal for EFSI and we welcome therefore the cooperation with the BaltCap Infrastructure Fund, as it is the first infrastructure fund in the Baltics with the goal to catalyse private investors to finance infrastructure projects. This Fund is an answer to the rising investment needs in transport, energy efficiency, and renewable energy sectors in the region. Particularly, it addresses the continuing and potentially growing demand for equity capital for the implementation of infrastructure projects. It thus encourages economic growth by promoting the competitiveness of the Baltic region and improving the business environment. What is equally important, the fund will create new jobs and by its focus on renewable energy and energy efficiency – significantly contribute to the climate change agenda.”

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said, “Investment in infrastructure in Europe is improving, but we still need to do more. This agreement to support the BaltCap Infrastructure Fund is a positive example of what we can do through the EFSI in order to mobilise such investments. I am particularly pleased that this agreement will support projects involving energy infrastructure, renewable energy and energy efficiency. By supporting investments in these sectors, we are helping to lay the foundation for future economic growth.”

“We are very honoured to be able to contribute to this important infrastructure fund which will benefit the economic and environmental development in all three Baltic states. From 1990, NEFCO has financed over 100 environmental projects in the region within the public and private sectors. This equity investment is, however, our first project in the Baltic States after re-entering that market recently, and we are especially pleased that the projects involve all three Baltic States: Estonia, Latvia and Lithuania,” says NEFCO’s Executive Vice President Kari Homanen.

BaltCap exits wind farms in Lithuania and Estonia to Lietuvos energija

BaltCap, the largest private equity and venture capital investor in the Baltics, exited 18MW Tuuleenergia wind farm in Estonia and 24MW Eurakras wind farm in Lithuania. These wind farms were acquired by Lietuvos energija, Lithuanian state-owned energy group.

 

“BaltCap has always believed in the future of green energy and the wind farm investments  matched well our investment criteria,” said Peeter Saks, Managing Partner of BaltCap. “As a private equity investor, our task was to be engaged in these projects during the development phase which was successfully completed in 2015 when both wind farms were commissioned. Lietuvos energija as a strategic investor with a long-term view on energy market was a natural buyer for these assets.”

 

“Mäli and Tamba villages enjoy one of the best wind conditions in Estonia,” said BaltCap’s Investment Director Kristjan Kalda. “Combined with the right choice of techology, the wind farm had the best load factor in Estonia last year.”

 

“This transaction marks the first exit of BaltCap Lithuania SME Fund, part of JEREMIE initiative in Lithuania. Strong and experienced team of co-investors and management played a key role to a successful wind farm development in Jurbarkas. It is within our expectations that the experience gained in this project will translate into new pan-Baltic infrastructure investments,” said Šarūnas Stepukonis, Associate Director at BaltCap.

 

“One of the strategic directions of Lietuvos energija is the development of production and diversification. Naturally, in assessing the current environment and future prospects, we chose wind energy as one of the development directions. Analyzing the market, next to the development projects we have discussed opportunities to acquire already existing wind power parks. We are pleased that after a market survey and identification of opportunities we successfully managed to acquire two wind parks. It is the first wind power capacity of Lietuvos energija and also first investment outside Lithuania – in Estonia,” says Dr. Dalius Misiūnas, Chairman of the Board and CEO of Lietuvos energija.

 

Lithuanian company Eurakras operates 24 MW wind farm in Jurbarkas district. Wind turbines are produced by German company Nordex. Each power plant has 3 MW capacity and tower height of 120 meters. The wind farm is brand new – construction completion certificate and authorization to produce electricity were issued in December 2015. BaltCap was  investor in Eurakras through Lithuania SME Fund.

 

Estonian company Tuuleenergia operates 18 MW wind farm in Mäli and Tamba  in Varbla parish, western Estonia. All six wind turbines are manufactured by German company Enercon. Each power plant has 3MW capacity and tower height of 99 meters. The wind farm was launched in the beginning of 2015. BaltCap was investor in Tuuleenergia through BaltCap Private Equity Fund.

 

Total transaction price for Lietuvos Energija was €28 million for 100% share in Tuuleenergia and 75% share in Eurakras, including buy-out of BaltCap´s co-investors. In Tuuleenergia transaction BaltCap was advised by corporate finance firm Superia and law office RASK.

 

Lithuania SME Fund is a growth capital fund organized by BaltCap in 2010 as part of the JEREMIE initiative in Lithuania. JEREMIE Holding Fund in Lithuania managed by EIF is financed from the EU Structural Funds under 2007-2013 Economic Growth Operational Programme.

 

 

For further information:

Kristjan Kalda                                                 

Investment Director

Tel: +372 665 0280

kristjan.kalda@baltcap.com

Tel: +370 5 278 2042

Mob: +370 611 43 548

ernesta.dapkiene@le.lt

 

Ernesta Dapkienė

Director of the Corporate

Communication Service of Lietuvos energija

 

Sarunas Stepukonis 

Associate Director

Tel: +370 5 254 6713

sarunas.stepukonis@baltcap.com