Sustainability-focused investment manager Mirova announced today that it has reached $282 million in commitments to the Mirova Gigaton Fund, its blended finance debt fund that aims to accelerate the transition to clean energy in emerging markets, reaching more than half of the fund's $500 million target per year after launch.
New investments in the Gigaton Fund since its first closure in March 2023 include a $75 million lead commitment from the European Investment Bank (EIB).
The Mirova Gigaton Fund aims to provide medium to long-term debt financing for clean energy projects, primarily in emerging countries in Africa, Latin America, the Middle East and Asia, in a bid to mobilize institutional investor support for high-risk climate mitigation. impact and adaptation, social development, economic infrastructure and investment in gender equality. The fund focuses primarily on small and medium-sized enterprises (SMEs), targeting areas including home solar systems, agro-solar, commercial and industrial solar energy, telecommunications tower solarization, mini-grids, as well as other promising sectors such as electric mobility, battery storage, climate-smart food systems, energy efficiency and pre-financing of carbon credits.
As part of the G7-founded 2X Challenge initiative, the fund also aims to improve women's livelihoods by improving access to finance for women entrepreneurs in emerging markets, increasing women's access to clean energy and equitable employment and quality as well as supporting business success.
Ryan Levinson, Director of the Mirova Gigaton Fund and Head of Emerging Markets Energy Transition, said:
“Our global objective is to contribute to accelerating the transition to a low-carbon economy and improving access to energy in Africa, Asia-Pacific and Latin America. We are honored to have the EIB joining us on this journey: it is a positive sign for private and public investors looking to allocate capital in emerging markets.”
In addition to its $75 million commitment, the EIB also announced a €5 million junior catalytic investment under the Luxembourg-EIB Climate Finance Platform, which aims to catalyze public and private sector investments in high-growth emerging market companies. impact involved in climate change and mitigation. projects.
EIB Vice President Ambroise Fayolle stated:
“Investing in clean energy in emerging economies means investing in resilience, helping communities better adapt to the impact of climate change and promoting a more sustainable future.”
Projects supported by the fund to date include Kenya-based smallholder solar and irrigation systems provider SunCulture, home solar systems provider Solar Panda, and Gabon and Africa-focused clean energy solutions provider Nigeria, Energy Vision.
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 of its target after just one year of fundraising, the Mirova Gigaton Fund is a testament to our ambition to develop our emerging markets platform to provide capital where investment is needed, particularly in infrastructure, will be the greatest in the coming decades.”
