The EDF Group, a leader in low carbon energy, and Amundi, the European asset manager, have announced their partnership for the creation of a joint asset management company. The prime purpose of this company will be to raise funds from institutional and retail investors and to manage on behalf of third parties funds intended to finance projects relating to energy transition.
EDF will contribute to this project its privileged access to investment opportunities within the energy sector thanks to its world-renowned expertise in the field. The Group will be a driving force behind investment for project development, implementation and operation. Amundi will provide its investment structuration skills as well as its fund-raising capabilities.
The partnership set up between these two leaders in their relevant scopes of expertise will benefit from the wide range of activities developed by EDF with respect to energy transition, while targeting the critical mass required for streamlined investment solutions. EDF and Amundi intend to offer the market two theme-based specific investment products. The first will be dedicated to renewable energy (wind power, photovoltaic, small hydro, etc.). The second will focus on energy saving strategies for B-to-B (including electro intensive industries). EDF and Amundi have set the fund-raising goal at 1.5 billion euros.
This partnership between an asset manager and an industrial company seeks to develop a new alternative asset class, decorrelated from the volatility of traditional investment markets, in order in particular to draw long term investments for the benefit of the real economy.
The joint asset management company between EDF and Amundi is expected to create in parallel an investment fund based on high yield real estate. This approach could be extended eventually to non-energy related infrastructures.
Yves Perrier, Amundi’s CEO, said: “This partnership with EDF is part of Amundi’s strategy to design innovating investment solutions for its clients whilst addressing investment challenges faced by corporates”.
Thomas Piquemal, EDF Group’s Senior Executive Vice President in charge of Finance, said: “After our inaugural Green Bond issuance in November 2013, a reference in the developing green bond market, this partnership with Amundi demonstrates once again EDF’s ability to innovate for the benefit of energy transition financing.”