The Foresight Italian Green Bond Fund is a closed-end Fund focused on direct lending for green infrastructure projects.
The Fund invests in Renewable Energy & Energy Efficiency Projects with long-term contracted revenues.
The lending takes the form of green bonds, which are senior secured, have a 25% tranche offering floating rate, are fully amortizing and once the underlying projects are operational these bonds are eligible to achieve investment grade rating.
Such bonds are directly originated and arranged by the Foresight Italian team, who have determined the covenants necessary to effectively control the underlying projects cash flows.
The cash yield targets 9-10%, while the target IRR is 6-8%. The team aims at releasing biannual cash distributions, with the first expected within 12 months from inception.