MAPFRE, the leading Spanish insurance group, 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 S.L (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 percent of the co-investment vehicle, while Iberdrola holds 20 percent and will be responsible for the promotion, construction, and maintenance of the renewable energy projects.
MAPFRE's commitment to socially responsible investment is one of the hallmarks of MAPFRE AM, the group's asset management company, and the largest independent asset manager in Spain, with more than 40 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.
MAPFRE and Iberdrola announced their strategic alliance in April 2021.
By pooling their respective market-leading capabilities and strengths, the companies are committed to the energy transition and the green economy as a way to transform Spain’s industrial network, sparking industry recovery and employment.
MAPFRE’s focus on sustainable investment is matched with Iberdrola’s focus on sustainable growth and asset turnover. The energy company has launched a 150 billion euro investment plan for the next decade, of which 75 billion will be invested by 2025, to triple renewable capacity and double network assets. In Spain, it will invest 14.3 billion euros by 2025 on renewables and smart electricity networks. Its renewables facilities currently total 17,500 MW, but with planned investments will be taken to 25,000 MW by 2025. Iberdrola has installed some 35,000 MW of renewables globally to date.
MAPFRE is a global insurance company. It is the largest Spanish insurer, one of the top multinational insurance companies in Latin America, and is ranked sixth largest in Europe in terms of Non-Life premium volume. MAPFRE has close to 34,000 employees and revenues in 2020 of approximately 25.5 billion euros.
MAPFRE AM has 40 billion euros of assets under management. As Spain’s largest independent investment fund manager, It is present in 25 countries and counts more than 150 investment professionals. A signatory of the UN Principles for Responsible Investing since 2017, it offers a range of mutual funds committed to investing through application of social, environmental and governance criteria.
Iberdrola is a global energy company. Ranked third worldwide by market capitalisation and a leader in renewables, it is spearheading the energy transition to a low-emission economy. The group supplies energy to nearly 100 million people in dozens of countries and has renewable, network and commercial operations in Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. It also maintains markets such as Japan, Ireland, Sweden and Poland as growth platforms. With a workforce of over 37,000 people and assets of more than 122.5 billion euros, in 2020 it posted revenues of more than 33 billion euros and net profit of 3.6 billion euros. The company contributes to maintaining 400,000 jobs in its supply chain, making annual purchases totalling 14 billion euros. A leader in the fight against climate change, it has spent more than 120 billion euros over the last two decades building a sustainable energy model based on solid environmental, social and governance (ESG) principles.