Mirova, the affiliate of Natixis Investment Managers dedicated to sustainable investment – supported by Mirova SunFunder East Africa Ltd as Investment Advisor (a wholly-owned subsidiary based in Nairobi) – last week announced a $171m first close of its Mirova Gigaton Fund which aims to accelerate the clean energy transition in emerging countries in Africa and Asia.
Shell Foundation, with co-funding from UK aid from the UK Government via the Transforming Energy Access (TEA) platform, committed $3m to the Fund that will be used as a catalyst in the Junior tranche and facilitate a $30m investment for the e-mobility value chain.
The Fund has a target size of $500m and expects to deploy U$1.2bn of private debt throughout its 15-year life primarily to small and medium-sized enterprises (SMEs).
“Shell Foundation and the UK government’s investment was catalytic in decreasing risks and unlocking support from DFC, SwedFund and Sida. Natixis Private Equity also invested in the fund to further mobilise private investors,” said Ryan Levinson, Director of the Mirova Gigaton Fund, Head of Emerging Market Energy Transition.
The Fund has already constituted a pipeline of investments in over 30 countries and continues to actively seek new investable opportunities that further the efforts to build a sustainable and low carbon future. The Mirova Gigaton Fund complements one of the key aims of the TEA platform, creating and scaling business solutions to enhance access to clean energy for underserved communities in Africa and Asia, to transform health, education, and income generation.
“We are proud to play a catalytic role with the UK government that enabled Mirova SunFunder to mobilise substantial capital for the Distributed Renewable Energy sector, which we believe represents the most cost-effective route to meeting the energy needs of millions of underserved consumers across Africa and Asia.” said Richard Gomes, Chief Programme Officer at Shell Foundation.
“More specifically, we see huge impact potential in supporting urban transporters transition from petrol or diesel to electric vehicles in Africa and Asia, and believe the Mirova Gigaton Fund, alongside the collective experience and networks of the partners, will bring substantial impact in these regions.”