Former Bord Gais boss eyes renewable sector
Mullins bids to raise €150m with promise of 6pc annual yield
THE former chief executive at Bord Gais is seeking to raise an Irish-based fund of up to €150m to invest in renewable energy in France and the UK.
John Mullins launched his new renewable energy asset management business Amarenco in Dublin yesterday.
The business is looking to raise between €50m and €150m in a tax-efficient qualifying investor fund (QIF) that will be run out of the IFSC.
A marketing roadshow to attract investments is due to kick off in the next two weeks and run into July.
The minimum investment in the fund will be €100,000.
The structure has been set up to create an attractive investment for pension funds, wealthy individuals, insurance funds and other investor types, Mr Mullins said.
That includes a target to generate a 6pc per year return payable annually over 10 years and the investment is proposing to hand investors a share of the residual value of the investment at the end of the period.
The regulated QIF structure and expected annualised yields should prove attractive to pension funds in particular, many of which are struggling to achieve yields through traditional investments, Mr Mullins said.
Amarenco is being promoted as an investment through Davy and its network of brokers around the country and will also be marketed in London.
The funds raised will be invested in solar power generation assets in the south of England and in France. There are government subsidies available in both countries for renewable energy investments.
German bank KFW will finance the French investment through project finance loans with the Irish fund contributing a 20pc equity investment.
Project finance is not currently available in the UK market, and the returns there will be lower as a result.
Mr Mullins is the chief executive of Amarenco, which has a staff of six that it hopes to increase to 20 over the next three years. He is heading up a team of five senior executives with a collective 100 years of experience in the renewable energy sector.