Asset manager Mirova has closed the first fundraising for a blended finance debt fund that targets clean energy investments in emerging markets.
The Paris-based Natixis Investment Managers affiliate has raised $170 million for the Mirova Gigaton fund, targeting clean energy transition projects in Africa, Asia Pacific, Latin America, and the Middle East.
The fund’s target size is $500 million, and it expects to deploy $1.2 billion of private debt throughout its life to small and medium-sized enterprises in various areas of the solar sector.
The blended finance approach is being more readily used in sustainable investment, as it often pairs state funding with private capital to amplify its effect.
Classified as an Article 9 strategy under SFDR, the Gigaton fund aims to impact people’s lives by offsetting CO2 emissions, creating jobs, advancing gender equality and improving energy access – all of which are listed under the UN’s Sustainable Development Goals.
Among the investors in the fund were the US International Development Finance Corporation, Swedfund (the Swedish government’s development financier), and Sida – the Sweden International Development Cooperation Agency.
Natixis Private Equity also invested in the fund, which already has a pipeline of investments in more than 30 countries.
The Mirova Gigaton fund is a Luxembourg Sicav.
Mirova is supported by Mirova SunFunder East Africa as investment advisor, a wholly-owned subsidiary based in Nairobi.
Ryan Levinson, director of the Mirova Gigaton fund, said: “Today, more than 770 million people lack energy access in the world – mostly in Africa and developing Asia – regions with populations that are also the most vulnerable to the global climate crisis.
“Addressing climate change requires a reallocation of capital to decarbonising global economies, particularly a clean energy transition in emerging markets.”
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