KBRA Assigns an A+ Rating to the Bilateral Capital Call Facility provided by BNP Paribas to BNP Paribas European Junior Infra Debt Fund II
7 Jan 2025 | London
KBRA UK (KBRA) assigns a rating to BNP Paribas' ("BNPP") bilateral commitment in a committed and secured capital call facility (the “Facility”) to BNP Paribas European Junior Infra Debt Fund II (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 €50 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 times, 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 is the second vintage in BNP Paribas Asset Managment's junior infrastructure debt strategy, focusing on debt investments in infrastructure projects in Europe. The Fund is targeting a total of €500 to €750 million of commitments with a hard cap of €1 billion. As of November 2024, the Fund had raised €280 million.
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.
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