Octopus has announced a new partnership with investors from Korea which will see £107 million deployed towards Octopus’ renewables strategy.
The deal is said to represent the first major investment from Korea in Renewables Obligation Certificate-backed energy assets and takes Octopus’ total assets under management of institutional funds to £2.3 billion.
The partnership, with Korea Investment & Securities (KIS), will see the establishment of the Renewable Energy Income Partnership II (REIP II), which will finance and acquire a portfolio of 15 UK solar assets.
Details of the assets have not been disclosed.
KIS has underwritten the transaction through equity and senior debt, with the debt to be acquired through three Korean insurance companies, namely Samsung Fire & Marine Insurance, KB Insurance and Hyundai Marine & Fire Insurance.
REIP II is the second in a series of asset-based partnerships that Octopus has established, the first – REIP I, founded in May last year – being a £300 million fund which is supported by a large UK-based institutional investor.
The firm said it intended to build further bespoke renewables portfolios based on investor requirements.
Hiti Singh, head of institutional investment at Octopus, said the firm had witnessed an increased interest from institutional investors to partner with them through corporate vehicles.
“Our large renewables portfolio enables us to offer flexibility to institutions looking to invest in renewable infrastructure. We can put in place bespoke structures to suit investors’ needs, for example creating common governance and corporate structures to enable investors to club together to pursue renewables.”