1. Next-Finance : Can you introduce us to your private infrastructure debt platform, called BRIDGE ? What is the current amount of your AUM and who are your investors ?

Jean-Francis Dusch : Edmond de Rothschild’s infrastructure debt investment platform BRIDGE (Benjamin de Rothschild Infrastructure Debt Generation) now manages close to €6.5 billion, mainly for European institutions, as well as a growing share of Asian and private investors, 10 years after its launch in 2014. We are the fourth largest European player in terms of infrastructure debt fundraising and the leading independent player, according to the latest Infrastructure investor ranking. BRIDGE’s infrastructure debt team is composed of 14 experienced professionals, of 8 different nationalities, from various sectors. Our mission is to offer investors a stable and predictable long-term return, from selected debt investments in developing and fast-growing sectors. From the very beginning of BRIDGE, we have been committed to the Energy Transition in all sectors, implementing an evolving strategy covering three types of debt instruments to ensure the sustainability of the capital structure of the projects we finance; and we act as an arranger of infrastructure debt.

2. What sectors do you cover ?

At BRIDGE, we are therefore fully committed to the energy transition, across all sectors, because the financing needs are immense. In Europe, which has made a bet on the energy transition, they must reach 700 to 1000 billion euros per year if we intend to meet the objectives, for example, of the EU for 55 initiative which aims to reduce CO2 emissions by 55% by 2030, which is tomorrow.

Over the past years, we have successfully financed projects in the energy sector across Europe : traditional projects : wind , solar and biomass, but also pioneers : biogas, carbon energy recovery (methane), biogas liquefaction, battery storage plant, hydroelectricity or grid flexibility. Our first investment of a hydrogen plant project financing is imminent.

Transport infrastructure and its greening are also undergoing a major transformation phase. The Trans-European Network, a pillar of the construction and interconnection of European infrastructure in recent decades and included in the Juncker Investment Plan for Europe, includes priority initiatives for the implementation and operation of charging stations for electric vehicles. Capital and private debt investments are directed towards financing these projects. Local authorities are greening transport fleets for healthcare workers or students. For example, offshore wind farm maintenance vessels are becoming electrified.

Energy-efficient social infrastructure is also central to the energy transition, with the development of "sustainable buildings" capable of reporting clear energy efficiency indicators in sectors such as health and education. Public services are also undertaking their transition through their decarbonisation, modernising installations, reducing CO2 emissions and gradually but surely – and within ambitious timeframes – moving away from fossil raw materials.

Finally, digital and social infrastructures (energy efficiency) are also an integral part of the transformation of society’s behaviors, contributing to the reduction of the carbon footprint and offering a broad investment universe.

3. Can you give us some examples of transactions ?

Among our flagship transactions, we have the Deux Acren project, a senior financing of €30.5 million for a battery energy storage system: it is now the largest storage unit in continental Europe. I can also take the example of the Ares operation, where we support the growth of La Française de L’Energie, enabling the extraction of methane abandoned in coal mines.

4. What is your current asset allocation ?

With over €6 billion of capital deployed across more than 145 investments in 21 European countries, our asset allocation is built around the five aforementioned sectors (Energy, Social, Digital, Transport, Public Services/Circular Economy) with an overall relatively fair allocation between sectors. Since March 2021, our funds have been SFDR Article 8 at minimum.

5. What about taking ESG factors into account when managing your investment strategies? And what about impact ?

Taking into account ESG factors in the management of investment strategies is essential for our BRIDGE platform. We have been pioneers in integrating these aspects since the genesis of BRIDGE in the selection, structuring, monitoring and reporting of all investments on our platform. We are committed to assessing and monitoring the climate impact of each asset, respecting selection criteria that guarantee a positive contribution while avoiding significant harm (DNSH). We have implemented a CO2 footprint monitoring for each asset and we analyse the impact of investments in relation to the Paris Agreement.

We also have 36 ESG criteria that we monitor for each investment, as well as independent risk monitoring. In addition, we are a signatory to the United Nations Principles for Responsible Investment (PRI) and have activated five of the UN Sustainable Development Goals (SDGs), ensuring that a minimum of 75% of our assets support initiatives related to these goals, such as health, decent work, innovation, sustainable cities, and the fight against climate change.

Thanks to this thinking and the efforts we have made in this direction, we have been named best ESG managers of infrastructure debt two years in a row at the IJGlobal ESG Awards (2022 and 2023).

6. Can you describe your three investment strategies, particularly in terms of return, risk and duration ?

BRIDGE offers three distinct strategies with the same investment universe:

• Bridge 2023 Senior, senior debt equivalent to BBB, targeting a yield of 5.25 to 6.5% per year gross.
• Bridge 2023 Yield Plus, subordinated debt (at the asset level or holcdo) targeting a yield of 8 to 9% per year gross.
• Bridge 2024 Yield Plus Growth, a hybrid and shorter product supporting the growth of medium-sized companies (and their projects), which targets a gross return of 11 to 12% per year.

7. What will be your favorite topics in the coming months ?

Continue to be a pioneer in supporting the implementation of European infrastructures as part of the global energy transition. Expand our geographical coverage beyond Europe, which has been a driving force in financing modern and impactful infrastructures.