Norwegian Fred. Olsen Renewables has secured EUR 480m for three existing wind farms, while the funds will also be spent on upcoming onshore wind projects in Sweden and the UK, informs parent company Bonheur in a press release.

The company will retain a 51% stake in the wind farm, while an investment fund will acquire the remaining 49%.

The funding comes from an investment fund with Kommunal Landspensjonskasse (KLP) and MEAG Munich ERGO Asset Management (MEAG) acting on behalf of various entities of Munich Re Group, including Keppel, with each of the parties committing EUR 160m in funding.

”Fred. Olsen related companies have for more than 25 years developed a strong eco-system and a solid track record within the renewable energy sector. We are very pleased to continue to build good partnerships, and here with strong long-term renewable energy investors KLP, MEAG and Keppel. This is another important step to further strengthen our ability to contribute towards the World’s need for renewable energy,” says Chief Executive Officer of Bonheur Annette Olsen in a statement.

Initially, the fund will acquire a 49% stake in onshore wind farms Lista Vindkraftverk, Fäbodliden Vindkraft, and Högaliden Vindkraft with a combined capacity of 258MW.

Aside from these, the fund will have exclusive rights and obligation to invest 49% in all onshore wind farms in the UK and Sweden upon final investment decision by Fred. Olsen.

The agreement will be in effect until the EUR 480m commitment has been fully utilized or upon expiry of a five-year period.

Following FID, Fred. Olsen and the fund will divide construction costs in accordance with share of ownership. The investment fund will be managed by Hvitsten, a licensed infrastructure fund manager owned by Fred. Olsen & Co.

At the end of the investment period for each wind farm, 100% interest reverts to Fred. Olsen Renewables for a nominal value.

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