MAPFRE launches first renewables fund

Spanish insurance group MAPFRE has launched its first renewables fund – MAPFRE Energías Renovables I FCR – further leveraging the ongoing strategic alliance with Spanish energy company Iberdrola towards creating sustainable investment products.

Energías Renovables I FCR will be used by the insurance group both to channel its own investments into renewables, but also to allow other institutional investors to tap into the strategy, as is the case with similar MAPFRE investments in real estate, infrastructure, venture capital and traditional assets.

MAPFRE will work with Kobus Partners to manage the fund, while Blue Tree Asset Management and King & Wood Mallesons have respectively acted as technical and legal consultants.

Simultaneous to the fund launch, MAPFRE and Iberdrola have also announced Energías Renovables Ibermap SL (Ibermap Renewables), a pioneering co-investment vehicle that, after incorporating a further 95 megawatts (MW) of operational wind farms in Andalucia, now has facilities with a total output of 325 MW.

Of this total, some 195 MW constitutes operational wind farms, including 100 MW in Castile and León. The remaining 130 MW comprises photovoltaic energy from facilities under development in Castile-La Mancha. These are scheduled to be commissioned during the third quarter of 2022.

The alliance partners envisage incorporating further assets until the joint investment reaches 1,000 MW.

MAPFRE owns 80 per cent of the co-investment vehicle, while Iberdrola holds 20 per EUR40 billion euros in assets under management. Moreover, it is the only Spanish company to have been awarded the French Ministry of Finance's prestigious SRI Label.

In recent months, Iberdrola and MAPFRE have also made progress in their agreement whereby the insurer's commercial network of roughly 3,000 offices in Spain will offer personalised and 100 percent renewable products from the energy company.