Release date: 19 May 2022
Promoter – Financial Intermediary
MIROVALocation
Description
Debt fund targeting small and medium-sized enterprises (SMEs) active in the generation and provision of clean energy in emerging markets, with a focus on sub-Saharan Africa.
Additionality and Impact
The operation concerns an investment in the Mirova Gigaton Fund, a USD 500m investment fund focusing on companies in sub-Saharan Africa, MENA, Asia and Latin America. The operation is in line with the EIB Climate Actions & Environmental Sustainability outside the EU, as it supports climate action projects in the energy space. Moreover, the investments will contribute to local private sector development, development of social and economic infrastructure, and climate change mitigation. In addition, the Fund Manager meets the 2X Challenge criteria demonstrating full commitment towards gender equality. The fund will invest primarily in distributed solar PV energy solutions thus addressing market failures that hinder the scale-up of access to clean energy. The investment is expected to have a significant positive social impact on final beneficiaries composed of low-income households and other micro-SMEs without access to reliable grid power and a significant improvement in the economic environment and living conditions. Due to its strong catalytic effect the EIB commitment is expected to trigger the investments from other DFIs while at the same time de-risk the investments from private investors. The risk of such private investors not joining is relatively low given the material de-risking provided by EIB and other DFIs.
Objectives
The fund aims to provide debt support to SMEs that generate and provide clean energy, primarily in sub-Saharan Africa and South East Asia. The fund has a focus on companies with positive climate, sustainability and gender impact in line with the objectives set in the EIB Climate Bank Roadmap and the Bank's Climate Action and Environmental Sustainability objectives. The fund will support the achievement of a number of sustainable development goals including SDG7 (Affordable and Clean Energy), SDG5 (Gender Equality) and SDG13 (Climate Action). This USD equivalent of EUR 70m investment from the EIB would contribute plugging the financing gap of various clean energy sources especially in sub-Saharan Africa. The fund's target size is USD 500 million.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 70 million
Total cost (Approximate amount)
EUR 502 million
Environmental aspects
The fund's operational guidelines will provide for environmental and social due diligence of investee companies according to guidelines acceptable to the Bank.
Procurement
The fund is expected to comply with the EIB's procurement guidelines.
Status
Signed - 9/11/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).