Infracapital, the infrastructure investment arm of M&G Investments, has committed £160m ($243m) to take a 70% stake in the Bioenergy Infrastructure Group (BIG), which has been created to invest in the construction of biomass and energy-from-waste (EfW) plants in the UK.
Infracapital's commitment is supplemented by a £33m investment from Helios and co-investment from Aurium and Foresight. RBC Capital Markets acted as sole financial advisor on the transaction.
BIG launches with an agreement to construct a 21.5MW EfW plant at Ince Park, Cheshire, the UK's largest resource recovery park. The plant has a construction value of £87m.
Infracapital said BIG and its backers are aiming to invest in other attractive biomass and EfW assets using its committed capital and potential further capital raising, adding, "With a growing need for renewably-sourced, reliable power generation in the UK, BIG will deliver further investment in greenfield renewable energy projects, while creating jobs and economic growth."
Andy Matthews, greenfield director, Infracapital, said: "The deal is indicative of the significant greenfield infrastructure investment opportunity in the UK and across Europe, where we intend to deploy further funds in the coming months and years."
Infracapital is a leading European infrastructure investor, managed by M&G Investment Management, the European investment management arm of Prudential. Infracapital has over £2.4bn in funds under management.
Channels:SAA/ALM
Companies:InfracapitalM&G InvestmentsBioenergy Infrastructure GroupBIGHeliosAuriumForesightRBC Capital Markets
People:Andy Matthews
