EIB signs equity co-investment in Ilmatar Energy alongside the Omnes-managed Capenergie 4 fund, supporting wind energy projects in Finland
The €35 million EIB investment will provide funding to Ilmatar Energy, a leading Finnish wind developer, to develop and build out its 3 GW project pipeline
EIB’s commitment will help Ilmatar Energy’s bid to become one of the leading Nordic renewable IPPs
The European Investment Bank (EIB) is reaffirming its support for renewable energy production in Finland by co-investing alongside the Omnes-managed Capenergie 4 fund. For llmatar Energy, the €35 million commitment comes alongside other investors to support Ilmatar Energy in consolidating its growth strategy and converting into a leading independent power producer (IPP). The EIB’s investment was crucial in finalising a fundraising round dedicated to Ilmatar Energy of €250 million, led by Omnes and its limited partners (LPs). Other co-investors include Amundi, Après-demain, Arcano Partners, Cambridge Associates discretionary client capital, Industriens Pension and RAISE Impact.
This fundraising commitment, one of the largest investments in the Finnish energy transition ever, will enable Ilmatar Energy to build at least 1 GW of installed wind capacity in Finland by 2027, of which 500 MW are already under construction or operational in different locations across the country includingthe 211 MW Piiparinmäki, which will be the largest wind farm in Finland when completed in the coming months. A further 2 GW of additional greenfield development will also benefit from this financial support and reach the ready-to-build stage in the coming years.
“EIB financing to renewable energy projects in Finland is expected to become increasingly relevant in the coming years,” said EIB Vice-President Thomas Östros. “The sector will require significant investment in order to achieve the country’s climate targets, and the EIB has the track record, experience and suitable financing to be an important partner in that endeavour. In line with the European Green Deal and the EIB’s climate ambitions, we’re happy to support these renewable energy projects.”
Juha Sarsama, Ilmatar Energy CEO, said: “At Ilmatar Energy we are extremely proud and humbled that the EIB chose to invest with us and we will be leading the way, showing how the green transition can be made so that consumers and different industries have the possibility to make green choices. For more than 10 years Ilmatar has pioneered the Finnish wind market and will continue to do so across those technologies which provide the lowest levelized cost of electricity.”
Serge Savasta, Managing Partner at Omnes, said: “This investment is an excellent example of how the EIB is able to leverage and work alongside private investors, united around the goal of driving the European energy transition. We are very pleased to have raised these funds which will be pivotal in transforming Ilmatar Energy into one of the leading Nordic IPPs. We would like to thank all our LPs for having supported Ilmatar Energy and Omnes in this landmark transaction.”
In 2020, the EIB made in excess of €676 million in loans available for Finnish projects. The EIB borrows money on capital markets and lends it to projects that support EU objectives, with about 90% of all loans being granted within the European Union.
Ilmatar Energy is a Finnish energy company that exclusively produces renewable energy and operates at every single stage of wind power production. Ilmatar sells renewable energy for consumers and businesses. The company will build, own and operate wind farms to increase Finnish renewable energy generation capacity by 1 GW by 2027. Ilmatar Energy is headquartered in Helsinki, Finland.
Omnesis a leading private equity and infrastructure investor. With €5 billion in assets under management, it provides companies with the capital they need to fund their growth in three key areas: venture capital, growth and buyout capital, and infrastructure. Omnes is wholly-owned by its employees. It is committed to environmental, social and governance (ESG) factors and has founded the Fondation Omnes to fund initiatives in favour of children and young people. It is a signatory to the United Nations Principles for Responsible Investment (PRI).
The day after the EIB Group and the European Commission signed in Brussels an agreement to implement the Investment Plan for Europe (the Juncker Plan), the EIB signed its first equity participation under the plan, a €50 million commitment to an investment fund managed by Omnes Capital and entirely dedicated to developing renewable energies: Capenergie 3.
The European Investment Bank (EIB), the Bank promoting European Union objectives, is reinforcing its support for cleaner energy with a landmark carbon fund and nearly EUR 450 million in fresh finance to improve energy efficiency, boost renewable energy sources and minimise greenhouse gases across Europe.
The Lithuanian utility will carry out the project through its subsidiary Pomerania Wind Farm. New onshore wind farms with a combined capacity of up to 94 MW will be located near the Baltic coast in northern Poland. The operation, backed by the Investment Plan for Europe, will help decarbonize the energy sector in Poland and improve the energy mix.