BlackRock Real Assets said Thursday it has closed its first investment in South Korea’s offshore wind sector, in line with the country’s renewable energy transition initiative.
The New York-based asset managing arm dedicated to real estate and infrastructure investment acquired a 100 percent equity stake in renewables developer Korea Renewable Energy Development & Operation Holdings, formerly known as Igis Private Equity. The transaction price was not disclosed.
BlackRock Real Assets said it plans to inject $1 billion of equity over time to build out Kredo Holdings’ pipeline of offshore wind and other renewables assets amounting to over 2 gigawatts in power generation capacity in waters off Imjado in Sinan County, South Jeolla Province and Yeonpyeongdo, Incheon.
“We believe that offshore wind will play a vital role in the nation’s road to decarbonization and that (Kredo Holdings) is ideally placed to partner with us,” Charlie Reid, managing director of BlackRock Renewable Power, said in a statement.
“This transaction demonstrates how South Korea’s commitment to a net zero future is creating compelling investment opportunities for BlackRock’s clients.”
The projects are expected to be fully contracted under 20-year agreements with subsidiaries of the state-owned Korea Electric Power Corp.
BlackRock Real Assets in April raised $4.8 billion, more than one-third of which is marked for investments in climate infrastructure assets in the Asia-Pacific region.
By Son Ji-hyoung (firstname.lastname@example.org)