New Investment in Emerging Markets


Infrastructure News: New Energy in Emerging Markets

Here is the latest news from Infrastructure Investor on the Frederic Michel-Verdier blog. Swiss impact manager responsibility Investments has held a first close on a private debt fund focused on expanding energy access in emerging markets. The responsibility Access to Clean Power Fund has already raised $151 million from a number of institutional investor partners. It has a hard cap of $200 million, which it hopes to achieve later in 2020, sister publication Private Debt Investor reported. The debt vehicle will address a lack of access to clean power globally with a particularly strong focus on sub-Saharan Africa and South and South-East Asia.

The fund is set up as a blended finance structure and is divided into four different risk tranches: junior, mezzanine, sub-senior and senior. Partners on the project include AHL Venture Partners, Ashden Trust, Bank of America, Bohemian Impact Investments and others.

Frederic Michel VerdierThe new fund will target companies that provide solutions for households without access to electricity or businesses looking for cleaner, cheaper and more reliable energy. responsibility claims it is the first investment fund of its type to actively address solar potential for the commercial and industrial sector. It will target average financing of $6 million with duration of three to five years for energy access companies and six to eight years for companies offering distributed generation to SMEs and commercial and industrial customers.

It is incorporated in Luxembourg with a fixed ten year lifespan. Over its lifetime its portfolio companies are expected to provide clean power to more than 150 million people and add 2,000MW of clean energy generation capacity, reducing carbon dioxide emissions by six million tonnes. Antoine Prédour, who oversees responsibility's energy debt financing activities, said: “By partnering with entrepreneurs as a first commercial lender, we want to enable clean energy businesses to scale up their activities and attract more funding in the long run.”

Emma Navarro, vice-president of the EIB, said its “investment in the fund is a clear demonstration of our commitment to sustainable energy access. By providing debt to companies supplying off-grid and distributed energy generation solutions to households and SMEs, the fund will fill an important financing gap in a sector that is essential to achieving both economic and social development”.

Frederic is an infrastructure veteran who specialises in infrastructure equity investments and asset management. Frederic Michel-Verdier will be attending the upcoming Infrastructure Investor Global Summit on 16th to the 19th of March 2020 in Berlin. Find out more about him and read his latest tweets on his Twitter profile and visit his website for more.

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