DWS Closes First Round of €323M ESG Infrastructure Debt Strategy
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- Sustainable Investments Focus: EIDS targets green and social infrastructure projects across Europe, with at least 50% aligned with the EU Taxonomy.
- Strong Investor Support: The strategy raised €323M in its first close, aiming for €500–€750M, including €200M for energy transition debt.
- Attractive Returns: Targeting gross annual returns of 5.5–6.5%, with stable yield income and downside protection for investors.
DWS has announced the first close of its ESG Infrastructure Debt Strategy (EIDS), securing €323 million from institutional investors across EMEA and APAC. This milestone highlights growing demand for sustainable infrastructure debt investments and reinforces DWS’s position as a leader in European infrastructure finance.
Advancing Sustainable Infrastructure
EIDS focuses on senior secured debt in key sustainability sectors, including:
- Renewable energy.
- Digital infrastructure.
- Clean transportation and circular economy projects.
The strategy ensures at least 50% of investments align with the EU Taxonomy and complies with Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR).
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Sundeep Vyas, Head of Infrastructure Debt Europe at DWS, emphasized the appeal of this asset class:
“Infrastructure debt continues to draw strong investor interest due to good risk-adjusted returns, attractive illiquidity premiums, and a strong pipeline of investment opportunities.”
Scaling Up for Greater Impact
EIDS is DWS’s second senior European infrastructure debt series, building on the success of its first vintage, which deployed over €850 million. The current fund aims to raise €500–€750 million, with a target gross return of 5.5–6.5% per annum and an annual distribution target of 5.0–6.0%.
The €323 million raised includes:
- €120M in a master vehicle for diversified investments.
- €200M in a side vehicle exclusively for energy transition projects.
Benjamin Schmitt, Director of Infrastructure Debt at DWS, highlighted the strategy’s dual impact:
“Institutional investors can invest in a diversified portfolio offering stable yield income, downside protection, and support for resilient, sustainable infrastructure in Europe.”
A Proven Leader in Infrastructure Investing
With over 20 years of experience in infrastructure equity and debt, DWS has built a strong track record:
- €13.9 billion in infrastructure equity assets under management (AuM).
- €3.4 billion in infrastructure debt AuM.
This latest achievement underlines DWS’s commitment to transforming Europe’s infrastructure and supporting the energy transition through sustainable finance.
DWS is well-positioned to scale EIDS to its target size while delivering robust returns and meaningful environmental impact for its investors.
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