Key Takeaways
- • Climate Fund Managers has secured approval for $140 million in catalytic financing from the Green Climate Fund (GCF) for Climate Investor Three (CI3), its global blended finance facility focused on industrial decarbonisation.
- • The $140 million is split between two country vehicles: $84 million to the SA-H2 Fund's construction equity tranche in South Africa, and $56 million to SDG Namibia One in Namibia ($15 million development tranche, $41 million construction equity tranche).
- • The catalytic funding is designed to mitigate project risk and help CI3 mobilise private capital toward its $1.2 billion fundraising target.
- • GCF describes the Southern African Industrial Decarbonization Facility as its first platform dedicated to industrial value chains in Africa, targeting 30 to 40 projects and about 1.52 GW of renewable energy capacity.
- • Invest International, owned by the Dutch state and development bank FMO, co-manages both country vehicles alongside Climate Fund Managers.
Summary
Climate Fund Managers has secured approval for $140 million in catalytic financing from the Green Climate Fund for Climate Investor Three (CI3), its global blended finance facility focused on industrial decarbonisation, including green hydrogen infrastructure in Southern Africa, according to Africa Private Equity News. The catalytic investment is intended to mitigate project risks and support CI3 in mobilising additional private capital toward its $1.2 billion fundraising target.
CI3 invests across renewable energy generation, production, transport and end-use infrastructure, supporting integrated industrial value chains. Its blended model combines public and private capital, with a development tranche financing early-stage project development and construction equity tranches providing equity to projects through construction.
CI3 deploys capital through two country-specific affiliates. The SA-H2 Fund in South Africa receives $84 million for its construction equity tranche. SDG Namibia One in Namibia receives $56 million, comprising $15 million for its development tranche and $41 million for its construction equity tranche. SA-H2 is managed by SA-H2 Fund Managers, a joint venture between Climate Fund Managers and Invest International. SDG Namibia One is managed by Namibia Energy Transition Fund Managers, a partnership of Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia (EIF).
Andrew Johnstone, chief executive officer of Climate Fund Managers, said the financing marks a milestone in directing capital through innovative structures into commercial climate investments and that GCF's catalytic financing can attract institutional investment into commercially viable industrial projects. Catherine Koffman, GCF regional director for Africa, said the Southern African Industrial Decarbonization Facility aims to unlock a target $1.2 billion programme across South Africa and Namibia through first-loss equity, financing 30 to 40 projects, installing about 1.52 GW of renewable energy and avoiding an estimated 24.2 million tonnes of emissions. Jeroen Plag, chief investment officer at Invest International, said the approval supports infrastructure and value-chain build-out in Southern Africa. Benedict Libanda, CEO of EIF, said SDG Namibia One combines international investment with local knowledge to advance projects that can create jobs and support Namibia's low-carbon transition.
CI3 invests across renewable energy generation, production, transport and end-use infrastructure, supporting integrated industrial value chains. Its blended model combines public and private capital, with a development tranche financing early-stage project development and construction equity tranches providing equity to projects through construction.
CI3 deploys capital through two country-specific affiliates. The SA-H2 Fund in South Africa receives $84 million for its construction equity tranche. SDG Namibia One in Namibia receives $56 million, comprising $15 million for its development tranche and $41 million for its construction equity tranche. SA-H2 is managed by SA-H2 Fund Managers, a joint venture between Climate Fund Managers and Invest International. SDG Namibia One is managed by Namibia Energy Transition Fund Managers, a partnership of Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia (EIF).
Andrew Johnstone, chief executive officer of Climate Fund Managers, said the financing marks a milestone in directing capital through innovative structures into commercial climate investments and that GCF's catalytic financing can attract institutional investment into commercially viable industrial projects. Catherine Koffman, GCF regional director for Africa, said the Southern African Industrial Decarbonization Facility aims to unlock a target $1.2 billion programme across South Africa and Namibia through first-loss equity, financing 30 to 40 projects, installing about 1.52 GW of renewable energy and avoiding an estimated 24.2 million tonnes of emissions. Jeroen Plag, chief investment officer at Invest International, said the approval supports infrastructure and value-chain build-out in Southern Africa. Benedict Libanda, CEO of EIF, said SDG Namibia One combines international investment with local knowledge to advance projects that can create jobs and support Namibia's low-carbon transition.
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