The European Investment Fund (EIF) has unveiled Green Private Credit, a pioneering private debt fund of funds dedicated to promoting sustainability and climate-focused financing.
Launched at the new European Investment Bank headquarters in Paris, the fund of funds is poised to boost green financing for European SMEs and small mid-caps.
The EIF said that with a target size of €200 million, the investment is set to unlock several billion euros in green financing across the EU.
“Anchor investors include the European Investment Fund and nine French institutional investors, primarily mutual and insurance companies such as BPCE Assurances, MACIF, L’Auxiliaire and Mutuelle Médicis …” said the EIF.
“The Green Private Credit represents a new investment opportunity for institutional investors, offering a significant contribution to the financing of Europe’s environmental transition.
“By focusing on providing alternative credit and non-dilutive debt financing, the fund aims to facilitate sustainable growth and decarbonization for over 300 European companies through investments in more than ten private credit thematic funds.
“This initiative provides institutional investors with direct access to the EIF’s expertise in the European private credit market, ensuring investments are targeted at funds with a strong focus on decarbonization across Europe.”
Ambroise Fayolle, vice-president of EIB Groupe, said: “This promising initiative illustrates how Europe, through this innovative financial instrument, can succeed in attracting private capital and developing a single capital market it needs to finance its transition to a new low-carbon model.”
EIF Chief Executive Marjut Falkstedt said: “Attracting private investors to contribute to the decarbonisation of SMEs is a key priority for the EIF. The importance of involving private capital in achieving public policy goals is also highlighted in the Draghi report. We are always looking to strengthen the partnership between public and private players to finance major European objectives, and this new initiative does just that.”