F2i Sgr announces new investments by the Infrastructure Debt Fund 1 (IDF1)
The fund closed 3 new transactions financing infrastructure operators active in Europe in the areas of telco towers, data centers and leasing of electric traction railway locomotives.
Milan, 13 November 2023 - F2i SGR announces the recent closing of 3 new infra debt transactions in Europe, bringing IDF1 to over €310 millions of invested capital in the first 12 months of its activity. With the subscription of these financings, IDF1 extends its support to strategic sectors for the development of digital infrastructure and the deployment of sustainable mobility.
These three transactions not only contributed to the rapid deployment path of IDF1, which has invested about 75% of the funds raised so far, but also confirm F2i's positioning and ability to intercept financing transactions supporting M&A and investment plans of European infrastructure players.
IDF1 participated in a loan granted to a leading operator based in Germany and active in the telco tower business across the EU. The investment support will enable the expansion and densification of telecommunication tower networks and the deployment of wider access to mobile connection and telecommunication services in urban, suburban and rural areas, which is consistent with one of the social objectives promoted by IDF1’s ESG strategy.
Besides, IDF1 provided financing in the context of the acquisition by Brookfield of Data4, a leading EU data center platform based in Paris. The aim of this deal is to create a state-of-the-art pan-European platform leveraging on Data4’s proven capability to meet the growing demand for data storage from cloud-providers that offer value-added services such as remote working & learning, remote diagnostics, artificial intelligence, video streaming and online gaming. The positive social impact of this growth plan is coupled with a sustainable development approach which leverages on energy supplies entirely sourced from renewable energy producers and ambitious net zero carbon targets which have been publicly announced.
Consistently with its ESG strategy as an Art. 8 EU SFDR fund, IDF1 participated in the green loan supporting Beacon Rail, one of Europe's leading lessors of locomotives and vehicles for freight and passenger transport owned by Infrastructure Investments Fund (infra fund managed by JP Morgan), in the acquisition of Mitsui Rail Capital Europe, the owner of a fleet of 214 fully electric locomotives for freight transport on European logistic corridors. The acquisition of a fully electric fleet is consistent with the support to sustainable mobility in the transportation of goods and is in line with the objective of reducing hazardous emissions, both promoted at European level.
“For 15 years F2i has been the largest investor in infrastructure in Italy. With the development of the first infrastructure debt fund IDF1, launched about a year ago, the platform has created a mean to invest in infrastructure debt, which is an asset class increasingly sought after by investors worldwide. We are very pleased to participate in financing transactions of the calibre of those announced today, which testify to the ability of F2i's platform to access the most important Italian and European transactions”, commented Renato Ravanelli, Chief Executive Officer of F2i Sgr.
IDF1 is in fundraising with a target of EUR 500 million and is investing in senior and junior debt through loans (direct lending) and bonds, in support of infrastructure across the EU. The Fund has already raised around EUR 400 million from institutional investors (Insurance Companies, Banks, Social Security and Pension Funds and Banking Foundations) and family offices. The fund qualifies as a product under Art. 8 of the EU Sustainable Finance Disclosure Regulation (SFDR) Regulation as it invests in direct loans and bonds issued by strategic infrastructure companies and promotes environmental and social characteristics in accordance with the principles of good governance practices.