Foresight Renewable Energy Income Fund

Product Name

Foresight Renewable Energy Income Fund

Issuer

Foresight Group Australia

Category

Investment

Type

Fund or Trust

Target

Wholesale, Institutional

Certified Since

2019

Asset Classes

Private equity

Markets

Australia

Investment Approaches

Positive Screening, Negative Screening

It Includes:

  • Riaa icons 10 Renewable energy and energy efficiency
  • Riaa icons 15 Social and sustainable infrastructure

It has some level of screening for:

    It fully excludes:

    • Riaa icons 41 Alcohol
    • Riaa icons 56 Animal cruelty
    • Riaa icons 36 Armaments
    • Riaa icons 33 Fossil fuels
    • Riaa icons 42 Gambling
    • Riaa icons 45 Genetic engineering
    • Riaa icons 52 Human rights abuses
    • Riaa icons 38 Labour rights violations
    • Riaa icons 34 Logging
    • Riaa icons 50 Nuclear power
    • Riaa icons 99 Pornography
    • Riaa icons 35 Tobacco

    Overview

    Foresight Renewable Energy Income Fund ("FREIF") is a renewable energy infrastructure debt fund, with the objective of providing investors an attractive, reliable and predictable income from senior secured debt in renewable energy projects that provide an attractive risk-adjusted return. Through the Fund, we are able to offer investors exposure to the forecast growth in the Australian renewable energy market with a target yield of 4.0-4.5% margin over the Reserve Bank of Australia (“RBA”) Cash Rate per annum (net of all fees and expenses).


    Description



    Foresight Renewable Energy Income Fund ("FREIF") is a fixed income strategy designed for investors looking for an attractive and reliable income stream.

    Through FREIF, Foresight are looking to exploit inefficiencies in the renewable energy debt market by focusing on small-scale projects which have not historically been able to secure sufficient debt finance from the Australian commercial banks. We will invest in senior secured debt of small to medium scale renewable energy and associated sustainable infrastructure projects in Australia. All projects are anticipated to be below approximately 50MW in generation capacity. The portfolio will be focused on small utility scale solar and wind projects but will also consider rooftop solar, hydropower, bioenergy, energy storage and energy efficiency.

    The strategy will be governed by two primary objectives:

    Investment Objective: Deliver a yield of 4.0%-4.5% margin above the RBA Cash Rate per annum (net of all fees and expenses) through investments in senior debt of small to medium scale renewable energy and associated sustainable infrastructure projects in Australia.

    Environmental Objective: To finance loans of sustainable infrastructure projects that combat climate change and contribute towards the global decarbonisation agenda. 

    To deliver on the Fund's Environmental Objective Foresight has developed a Sustainability Framework (available on the Fund's website) that limits the investment strategy to lending to sustainable infrastructure projects only. The Sustainability Framework sets out five criteria and seventeen sub-criteria that will be used to assess every project that the Fund is considering lending to:
    1. Sustainable development contribution;
    2. Environmental footprint;
    3. Social engagement;
    4. Governance; and,
    5. Third Party Interactions.
    On an annual basis the Carbon Trust will undertake a review of the Fund’s performance against a set of defined key impact indicators, consistent with the guidance maintained and developed under International Capital Markets Association’s ("ICMA") Green Bond Principles. This will track the Fund's contribution to the UN Sustainable Development Goals, notably:
    • Goal 3: Good Health and Well-being
    • Goal 7: Affordable and Clean Energy
    • Goal 9: Industry, Innovation and Infrastructure
    • Goal 13: Climate Action
    • Goal 15: Life on Land

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