Munich Re investment arm participates in funding renewable energy provider

Munich Re investment arm participates in funding renewable energy provider | Insurance Business Asia

Reinsurance

Munich Re investment arm participates in funding renewable energy provider

Group operates a supply grid spanning almost 1,500 kilometers

Reinsurance

By
Kenneth Araullo

MEAG, global reinsurer Munich Re’s investment arm, has announced its participation in the financing of Solør Bioenergy Group, acting on behalf of its institutional investors.

MEAG joined a lending syndicate to support Solør, a leading provider of renewable district heating, steam, electricity, biofuels, and innovative water system solutions for private households and industries, through a holding company.

Benjamin Hemming (pictured above), head of illiquid debt assets at MEAG, said that Solør’s diversified customer base and long-term contracts make it an attractive investment opportunity.

“We’re excited to be part of its continued success story,” Hemming said.

Established in 2003, Solør has significantly expanded through over 230 strategic acquisitions, including notable purchases of E.ON, NBI, and Veolia’s Nordic district heating business. MEAG’s financing will enable Solør to pursue additional strategic acquisitions and further strengthen its position as a market leader in northern Europe.

Solør operates a supply grid spanning 1,438 km, delivering heat and industrial steam to approximately 600,000 end-users. The network includes 300 sites, consisting of 105 district heating plants, 170 local heating plants, eight biomass plants, and 19 utility solution plants.

Ownership of Solør is divided, with Polhem Infra, an infrastructure investment company belonging to the Swedish Pension Fund, holding 40%, and Nordic Infrastructure, a holding company owned by Solør’s founders, holding 60%.

MEAG, the asset manager of Munich Re Group, has branches in Europe, Asia, and North America. It offers its expertise to institutional investors and private clients outside the company group. MEAG currently manages assets valued at approximately €345 billion, with €61 billion managed for non-group investors.

Back in May, the asset manager also announced that it is financing new rolling stock for the Leipzig Central German S-Bahn Network 2025+.

Rock Rail and Infracapital have created an investment platform for rolling stock in Germany, which will finance a new electric fleet for the Leipzig Central German S-Bahn Network 2025+ (MDSB 2025+).

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