KBRA Assigns an A Rating to BNP Paribas' Commitment in a Capital Call Facility to BNP Paribas Low Carbon Transition Infra Equity I S.L.P.
31 Dec 2024 | London
KBRA UK (KBRA) assigns a rating to BNP Paribas' ("BNPP") commitment in a capital call facility in the form of a committed, secured facility (the “Facility”) to BNP Paribas Low Carbon Transition Infra Equity I (the “Borrower” or the “Fund”). The rating assigned was requested by BNPP as the sole lender in the transaction. KBRA has assigned an A rating and stable outlook to BNPP's €105 million commitment to the Facility.
The Facility may be used to finance investments, costs, fees and expenses incurred in connection with investments as well as to finance any other expenses permitted within the Fund’s governing documents. The investor base is divided into Qualifying Investors and Non-Qualifying Investors, with Qualifying Investors required to be approved by the Lender. The Lender’s recourse, however, is to all LPs of the Fund, including Non-Qualifying Investors. Availability under the Facility is restricted to the total undrawn commitments of Qualifying LPs. The uncalled commitment test requires the Fund to maintain uncalled commitments from Qualifying LPs of at least 1.50x of all financial indebtedness at all time, or 1.35x once all of the following conditions are met: (i) 50% of the capital commitments have been called; (ii) the Fund had its final close; and (iii) The Net Asset Value plus Qualifying Investor Uncalled Capital Commitments is at least 3.0x against the financial indebtedness.
The Fund was launched in May 2024 and is a new strategy launched by BNP Paribas Asset Management to help further the objective to transtion to a carbon neutral economy. The strategy focuses on equity investments in mid and upper-mid market asset-based operators in clean energy, circular economy, and sustainable mobility in Europe. The Fund is targeting a total of €750 million of commitments and has raised €352.6 million as of May 2024.
BNP Paribas Asset Management is the investment management arm of the BNP Paribas Group, with approximately €562 billion of assets under management, including €300 billion of institutional assets under management. The firm employs over 3,200 employees in more than 30 countries. BNP Paribas Asset Management Europe serves individual, corporate and institutional clients in 67 countries across Europe and Asia Pacific. The firm has offerings across five capabilities: High Conviction Active Strategies, Emerging Markets, Private Assets, Systematic, Quantitative & Index, and Liquidity Solutions.
This report has been updated on 31st December 2024 to remove a repeated sentence.
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