IFC pledges $100m to Actis Energy 4

The multilateral‘s commitment to the vehicle, which has a $2bn target, will be split between IFC’s main account and its asset management arm.

The International Finance Corporation has agreed to invest $100 million in Actis Energy 4, a power-focused fund currently being raised by the eponymous emerging market firm. 

The pledge comprises an equity commitment of up to $65 million from IFC’s own account as well as a $35 million capital injection on behalf of the IFC Asset Management Company, the World Bank affiliate said in a project disclosure on its website. 

The fund will target investments in the power generation sectors, with a focus on renewables, as well as in electricity distribution assets in Africa, Asia and Latin America. 

Actis declined to comment on the fundraising activities and returns. 

IFC said the partnership with Actis will extend beyond its fund commitment as the institution will also seek to provide other types of financing and share insights over the projects backed by the vehicle. 

The vehicle’s predecessor, Actis Energy 3, closed on $1.15 billion in 2013, above its $750 million target. The fund’s portfolio includes five generation platforms and two distribution businesses in in Latin America and Africa. Actis Energy 1, launched in 2002, closed on $800 million while Actis Infrastructure 2 closed on $752 million in 2007. 

Actis currently has $6.3 billion in assets under management, 26 percent of which are in the energy sector, as of 2015.

In April, IFC approved a $60.4 million loan to Ostro Energy, a $230 million platform set up by Actis that targets renewable projects in India. The proceeds were earmarked for two wind projects with a combined capacity of 197.4MW.