Eurazeo green fund backs first project

EIF’s investment of EUR70m brings the fund to EUR200m after five months, over half of ESMI’s target size of EUR350m. Once up to size, Eurazeo expects to be able to support 50 European operators of small and medium size vessels in their decarbonisation goals.

Target areas for investment include vessels with environmentally friendly technologies, iinovative port equipment and infrastructure, and assets that support offshore renewables development.

The first project backed by the fund is the financing of a jack-up vessel for offshore windfarms. The vessel will be used for construction, repair and maintenance of European offshore windfarms and will be finance under a sale and leaseback deal for Harren & Partner Group.

Euorazeo said the vessel is currently in the North Sea working on the 54-turbine German wind farm Nordsee One.

ESMI was the first green leasing fund supported by the EIF through the European Fund for Strategic Investments (EFSI) Private Credit Tailored for SME programme; EIF joins investors including state organisations, insurers, corporations, private sales networks and international investors.

The impact of the fund’s investments will be measured through quantitive indicators of emissions reductions via a methodology reviewed by independent experts and audited annually by a third party.

EIF Chief Executive Alain Godard said: "Our cooperation with Eurazeo, with the support of EFSI, demonstrates Europe’s strong commitment to improving access to finance for small and medium sized businesses in Europe. Given the EU Green Deal and sustainability focus of the Multiannual Financial Framework, this transaction provides support to an alternative lender in the context of the EU's green transition."

Sylvain Makaya, Partner at Eurazeo, said: “At a time when we need to at least halve emissions by 2030 to hope limit global warming to 1.5°C, we are committed to being an active contributor to the solution by deploying meaningful funds like ESMI that provide a response to the environmental and climatic issues.”

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