Norges Bank Investment Management (NBIM), Norway’s sovereign wealth fund, on Friday said that it has entered into an agreement with Brookfield Asset Management to commit $1.5 billion to the latter’s latest energy transition fund Global Transition Fund II (BGTF II).
Since receiving the management mandate from the Ministry of Finance in 2019 to invest in unlisted renewable energy infrastructure, NBIM has completed eight direct investments in European solar, onshore and offshore wind, and electricity transmission systems, as well as one indirect investment through a global renewable energy fund.
NBIM continues to build this portfolio and have now entered into an agreement for a second indirect investment through a fund, in line with its strategy for this period.
Harald von Heyden, Global Head of Energy and Infrastructure at NBIM, said that this agreement marks their first investment in an energy transition fund. BGTF II will enable NBIM to invest in projects that develop renewable energy infrastructure while also supporting the broader transition to low-carbon solutions across industries.
Focus on Clean Energy
BGTF II focuses on business transformation, clean energy, and sustainable solutions aimed at accelerating the transition to a net-zero economy. The fund will invest across North America, South America, Europe, and Asia Pacific regions where Brookfield has established operational presence.
BGTF II, which targets investments in clean energy and decarbonisation, has a $17 billion fundraising target. The fund’s seed portfolio includes a UK-based renewable-energy developer and an Indian solar development venture.
“After thorough due diligence on both investment and non-financial risks, we are confident in our selection of Brookfield as a partner for this important investment. Brookfield has established itself as a global leader in the energy transition space, managing one of the world’s largest renewable energy portfolios,” von Heyden added.
NBIM is the fund management division of Norges Bank that manages the Nordic country’s $2 trillion sovereign wealth fund.
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