Innovative new projects
Triodos Groenfonds is the oldest green investment fund in the Netherlands and since its establishment has been one of the front-runners in funding the sustainable energy transition. To be able to maintain its position as a front-runner, the fund will, going forward, focus increasingly on technologies that contribute to the acceleration of the energy transition. These include battery storage, heat transition, hydrogen, etcetera, in addition to traditional renewable energy production based on solar and wind power.
“The divestment of part of the portfolio - all loans for solar and wind projects - has released capital that can now be reinvested in innovative new projects. This adjustment of the allocation of the fund assets has also improved the fund's alignment with the modified Green Funds Scheme and ensuing stricter sustainability requirements that projects must meet,” says Willy Bulsink, fund manager for Triodos Groenfonds.
Impact of investor sentiment
Furthermore, the war in Ukraine, inflation and rising market rates have had an impact on investor sentiment. Consequently, in 2022, the fund faced a net outflow instead of a net inflow for the first time in many years. The direct outcome was that the fund could make fewer investments, especially given the fact that based on prudent fund management sufficient cash must be maintained to be able to comply with redemption requests from investors. The sale of part of the loans portfolio therefore not only creates scope for new impactful investments, but also contributes to healthy cash management.
Water and sustainability
Nederlandse Waterschapsbank (NWB Bank)) is a bank run by and for the public sector, with a particular focus on water and sustainability. NWB Bank has integrated the loans acquired from Triodos Groenfonds in its portfolio of sustainable energy projects.
“This partnership with Triodos exemplifies that, owing to our affordable and sustainable funding, our offering is complementary to that of the commercial banks. By acquiring this portfolio, we are also taking an important step towards our own ambitious goal: an energy-positive credit portfolio by 2035, heading towards climate-neutral by 2050”, says Leon Knoester, Head of Specialised Finance at NWB Bank.
Triodos Bank managed the loans on behalf of Triodos Groenfonds and will continue to do so for NWB Bank. Triodos Bank will therefore remain involved with the borrowers that once opted for Triodos as a lender for their sustainable energy projects.
Triodos Groenfonds was advised by Voltiq and Dentons, while NWB Bank was advised by Stek.