AFDB approves $32m for Climate Fund
The African Development Bank (AfDB) has approved $32.5 million equity investment in Climate Investor One’s Construction Equity Fund (CEF).
The cash was approved by AfDB Board of Directors of for the CEF which is a platform that uses a unique blended finance approach, and targets the entire asset lifecycle to deliver viable renewable energy projects to the market.
AfDB said CIO will provide capital and technical assistance for early stage project development to ensure that bankable energy projects are delivered to the market; invest equity for the construction of projects and provide debt at competitive terms.
According to a statement by the bank, it explained that the Bank’s investment in CEF will be managed by Climate Fund Managers (CFM), a joint venture between Netherlands Development Finance Company (FMO) and Sanlam InfraWorks. The CEF’s focus on investing in early stage project development will also assure the timely implementation of well-prepared projects. The Bank’s Vice President for Power, Energy, Climate Change and Green Growth, Amadou Hott, who spoke at the board meeting, said “significant investments are required to close the infrastructure gap and meet energy access goals.’’
