ImpactAlpha, September 5 – The Australian investment bank Macquarie already has A$20 billion ($13.6 billion) in renewable energy deals under its belt. But that’s chump change compared to the opportunity. Macquarie expects $8.8 trillion will be invested in new zero-carbon energy capacity by 2040.
“Renewables are becoming the pragmatic choice rather than the brave one,” Macquarie Capital’s Mark Dooleyacquarie wrote.
That may not only be for climate-related reasons. The Sydney Morning Herald reported that the bank is anticipating investors shifting to alternative assets like infrastructure as bond yields dip.
In response, Macquarie went to market with an A$1 billion ($675 million) equity fundraising target to shore up capital for near-term projects in the pipeline. (That’s in addition to an A$5 billion capital surplus.)
“Renewable energy is an area where our investors are getting very strong returns,” Macquarie chief executive Shemara Wikramanayak said.
On a related note. Macquarie’s infrastructure debt investing group loaned €38 million to portfolio of six solar farms in Spain. The group has also been and has accelerating activity in Europe and North America through its Green Investment Group.