Mirova’s blended finance debt fund that aims to accelerate the clean-energy transition in emerging markets has so far raised $282m (€259m).
The Natixis Investment Managers affiliate said the Mirova Gigaton Fund 1’s latest fundraising comprises a $75m commitment from the European Investment Bank (EIB) and an additional €5m from the Luxembourg-EIB Climate Finance Platform (LCFP).
The commitments, together with the capital raised first close in March last year, Gigaton Fund 1 has reached over half its $500m target size, with $282m closed to date, the manager said.
The Gigaton Fund provides loans to businesses in Africa, Latin America, the Middle East and Asia that are working on clean-energy solutions, such as solar power, mini-grids and electric vehicles. Projects funded by the blended finance debt fund will help people receive reliable and affordable clean energy, and reduce reliance on fossil fuels.
Ryan Levinson, director of the Mirova Gigaton Fund and head of emerging market energy transition, said: “Our global goal is to contribute to the acceleration of the transition to a low-carbon economy and improving energy access in Africa, Asia Pacific and Latin America.
“We are honoured to have the EIB join us on that journey. It is a positive signal to private and public investors looking to allocate capital in emerging markets.”
Raphaël Lance, head of energy transition funds at Mirova, said: “The challenges of sustainable finance go beyond the borders of developed countries – by exceeding half its target after only one year of fundraising, the Mirova Gigaton Fund is testament to our ambition to develop our emerging markets platform to provide capital where investment needs, particularly in infrastructure, will be the greatest in the coming decades.”
Ambroise Fayolle, VP of EIB, said: “Investing in clean energy in emerging economies means investing in resilience, helping communities to better adapt to the impact of climate change and fostering a more sustainable future.
”The EIB is committed to helping to leverage institutional investors’ support for climate action and clean-energy transition and is pleased to provide $75m to the innovative Mirova Gigaton Fund.”
Andy Keith, CEO of Solar Panda, said: “The investment from the Mirova Gigaton Fund will allow us and other innovative projects to improve the lives of many more people on the African continent, and more broadly in emerging countries where access to safe and clean electricity is still an issue for many.”
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