EM-focused fund secures $412m at first close

The vehicle, which has a $1 billion target, counts LPs from the Netherlands, Norway, the UK and South Africa.

Climate Investor One, the inaugural financing vehicle by Climate Fund Managers, has reached a first close at $412 million with support from investors from Europe and South Africa. 

With a fundraising target of $1 billion, the fund is a partnership between Dutch development bank FMO and South African-based Phoenix InfraWorks, launched in December 2015.

A majority of investors in the fund come from the Netherlands, including the Director-General for International Cooperation, export credit agency Atradius Dutch State Business, NWB Bank, Aegon Asset Management and FMO. KLP from Norway, Sanlam Investments Holding from South Africa and the UK’s Royal Borough of Windsor and Maidenhead Pension Fund also contributed to the first close, according to the fund manager. 

The vehicle aims to provide expertise, technology and financing to solar, wind and run-of-river hydro projects in Africa, Asia and Latin America. It comprises three funding schemes designed to support project lifecycle from early-stage development to construction and refinancing, once facilities commence operations. 

The fund manager agreed last year to team up with Sindicatum Renewable Energy Company, a Singapore-based firm, to jointly develop a 25MW ground-mounted solar project in the Philippines. The scheme is the first phase of a 100MW solar pipeline under development by Sindicatum. 

Prior to its first Asia commitment, the fund had partnered with France’s CDEN to develop a renewable facility in Rwanda which combines a 15MW solar farm and 2MW pumped hydro storage. It had also teamed up with developer eleQtra to build a project co-locating 75MW of hydro and 20MW of solar in Zambia.