Infranode closes SEK 1.9 Bn second investment round reaching SEK 3.35 Bn total
– First private infrastructure investment platform in the Nordics to receive funding from the European Fund for Strategic investments (EFSI)
Infranode is pleased to announce the closing of its second investment round. The Infranode I investment platform raises SEK 1.9 Bn dedicated to essential infrastructure investments in the Nordics. It brings the total capital raised to date to SEK 3.35 Bn. The investors are e.g. Folksam, KPA Pension, the European Investment Bank (EIB) and IMAS Foundation.
“We are very proud to get such strong support from institutional investors as the EIB, Folksam and KPA Pension. There is a gap between the need for infrastructure development and the public sector’s ability to invest. Infranode has a 25 year investment horizon and we are therefore unique in the Nordic market by aligning long-term investors and the public sector in working towards a common vision and goal. We can bridge the gap between long term investors seeking stable returns in infrastructure and the public sector’s time perspective and ability to invest, as we share the same goals and incentives, making us the most suited partner for the public sector”, says Infranode co-founder and partner Christian Doglia.
The Nordic infrastructure market has a significant investment need that is expected to reach EUR 200 Bn over the coming 10 years. Sweden’s investment backlog is expected to reach EUR 77-110 Bn by 2025. Sveriges Kommuner och Landsting (SKL) calculates that the overall cost for Swedish municipalities will exceed income by SEK 47 Bn by 2020.
“Infranode will tap into this market primarily targeting public and private small and mid-sized infrastructure assets in the Nordics. We work with investors who favour a truly long-term investment approach with lower risk and stable cash yields”, says Infranode co-founder and partner Philip Ajina.
Investors participating in the second closing include Swedish insurance company and pension investment manager Folksam and municipal sector insurance and pension company KPA Pension.
“We are very pleased to be able to participate in this investment with Infranode, as it allows us to grow our exposure in infrastructure. By engaging in these types of investments we hope to safeguard good, long-term returns to our customers. It also feels particularly good to team up with other long-term and well-respected co-investors”, says Jens Henriksson, President and CEO of Folksam.
The European Union will also support investments into local infrastructure in the Nordic countries through the Infranode I investment platform, as the EIB signed a SEK 900 Mn commitment in the platform. The operation is the first Nordic private infrastructure investment platform to be guaranteed under the European Fund for Strategic Investments (EFSI), an EU guarantee mechanism promoting crucial investments which is part of the Investment Plan for Europe of the European Commission.
"The Nordic infrastructure market has a significant investment backlog and faces limited funding opportunities. Many of these projects are relatively small, making it challenging for the EIB to directly support them. It is thanks to Infranode acting as a local intermediary that we can lend our financial support here and improve peoples’ lives. The EFSI guarantee is another important catalyst for our first ever long-term equity injection in a local platform in Sweden”, says Jan Vapaavuori, EIB Vice-President.
Infranode finalized its first investment round in 2014, having raised SEK 1.45 Bn from cornerstone investor IMAS Foundation.
“We believe that investing in infrastructure is, in addition to generating a stable long term return, an important way to play an active and responsible role in helping improve our society. That’s why IMAS Foundation decided to be the first investor in Infranode I. It’s therefore great to see that significant partners are now joining us on this investment platform, providing patient capital for needed Nordic infrastructure investments”, says Petter Odhnoff, CIO at IMAS Foundation.
Infranode plans a final closing in 2017 in order to reach the investment platform’s target of SEK 4 Bn.
About the investors
Folksam is a Swedish insurance and pensions savings company and one of Sweden’s largest investment managers with a total SEK 400 Bn in assets under management. KPA Pension is a subsidiary to Folksam and the leading pensions company for the local government sector in Sweden. KPA Pension works with pension insurance, capital management and pension’s administration. Folksam holds 60 per cent of the shares in KPA pension and Sveriges Kommuner och Landsting (SKL) holds 40 per cent of the shares.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2016 alone, the Bank made available nearly EUR 1.7 Bn in loans for Swedish projects in various sectors, including urban development, industry and research.
IMAS foundation is a Dutch foundation and a sister foundation to the INGKA Foundation. INGKA Foundation is the owner of the INGKA Group, which owns and operates the majority of IKEA stores worldwide.
Infranode is a long-term Nordic infrastructure investment company founded in 2013. We want to become the leading sustainable business partner for the public sector in revitalizing and developing Nordic infrastructure. Infranode is an affiliate to Areim, an established Stockholm-based real estate investment manager and investment advisor. Areim has a 10-year and SEK 50 billion real estate investment management track record and currently manages three value-add real estate funds with a reputable local and international institutional investor base. Together, Areim and Infranode offer real asset investments in the Nordics, a rapidly growing asset class.
About the Infranode I investment platform
- Built upon a select number of credible long-term investors sharing Infranode’s vision.
- 25 years investment maturity.
- Focus on cash yield and low operating risk.
- Focus on Nordic infrastructure assets such as energy and other utilities, telecom, transportation and social infrastructure.
- Buy and hold approach in contrast to private equity infrastructure funds with a shorter-term investment horizon.
- SEK 1.9 Bn in second closing on top of SEK 1.45 Bn in first closing with target SEK 4 Bn.
- Investors are e.g. Folksam, KPA Pension, European Investment bank (EIB), and the IMAS Foundation.
- Small and Mid-cap focus.
- Ability to invest multiples of committed capital through co-invest programme.
- Transparent Swedish legal structure.
- Flexible investment offer focusing on building partnerships with the private and public sector.
For further information:
Christian, Doglia, Co-founder and partner, Infranode,
+46 73 320 74 87
Philip Ajina, Co-founder and partner, Infranode
+46 70 755 99 78
Lena Silberman, Communications, Infranode/Areim,
+46 70 522 12 29