A partnership between Macquarie Group’s Green Investment Group and the UK government has made a follow-on investment in Revego Africa Energy.

UK Climate Investments (UKCI) said it has invested a further £15m (€17.5m) to support Revego’s long-term growth and mobilise further private finance flows in support of South Africa’s clean energy transition.

Working alongside Investec Bank, Eskom Pension and Provident Fund, UKCI made an initial ZAR500m (€28.7m) commitment earlier this year to help establish Revego, Africa’s first dedicated renewable energy yieldco, managed by fund manager Revego Fund Managers.

UKCI said its additional commitment will support the further growth of the yieldco as it scales up with a view to listing in the public market in due course and further reducing emissions.

”With this additional funding and sustained backing from UKCI, Revego’s portfolio is expected to grow at pace over the coming 12-18 months as it pursues an attractive pipeline of investment opportunities across the region.”

Richard Abel, managing director of UKCI, said: “UKCI is delighted to commit this increased level of support to Revego as it actively develops and grows its portfolio of high-quality assets under management.”

Antony Philipson, British high commissioner said: “We saw a historic level of ambition with climate finance commitments made at COP26, which are needed to help South Africa and other countries accelerate their clean energy transitions in a just and resilient way.

“We are delighted that the additional UK funding for the Revego Africa Energy YieldCo makes a significant contribution to those efforts, aiming to boost investors’ confidence to expand Revego’s impressive renewable infrastructure portfolio and help it pursue long-term growth opportunities.”

Ziyaad Sarang, CIO of Revego Fund Managers, said: “UK Climate Investment’s latest investment is a vote of confidence for the strength of our current portfolio and the potential for South Africa to become a renewable powerhouse.

”The new funding helps position us to achieve our target of doubling Revego’s assets under management in the next 12-18 months.”

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