Keva with four other European institutional investors has acquired a share of Stockholm Exergi, the district heating company of Stockholm. The consortium acquired a share of 50% from Fortum, the City of Stockholm still owns 50%. The completion of the transaction remains subject to applicable regulatory approvals.
The consortium consists of a group of long-term European institutional investors comprising APG, PGGM, Alecta, Keva and AXA.
Stockholm Exergi is at the moment the largest operator of district heating network in the Nordics. It has over 10,000 corporate customers equating about 800,000 end users across seven municipalities in Stockholm County. 86% of the company`s turnover consists of district heating.
The company has an important role in Stockholm’s strategy to achieve net-zero emissions by 2040. Stockholm Exergi has set its goal to be a climate-positive business as early as in 2025. It has succeeded in reducing its carbon footprint by 72 % from 2010 to 2020.
Markus Pauli, Head of Alternative Investments at Keva, said: “We are excited about the opportunity to grow our infrastructure assets by investing in Stockholm Exergi. Investment opportunities of this quality and size are not common. This investment really fulfills Keva´s financial and ESG aspects and we look forward continuing developing it together with our partners and with the City of Stockholm.”
Keva is a long-term investor and according to Pauli this type of district heating infrastructure investment fits excellently in its investment portfolio. The investment offers a stable, predictable and long-term cash flow.
“Stockholm Exergi has a high ambition on sustainability and plays an important role in the climate targets of the whole region, which naturally suits Keva well as a responsible investor”, Pauli underlines.