Mergence Investment Managers and Third Way Investment Partners have invested R225 million (about $13.5 million) each to refinance a major renewable energy plant in a remote area of South Africa. The project cannot yet be named for confidentiality reasons.

Both parties to the transaction have strong track records in impact and infrastructure investing on behalf of institutional investors, mainly retirement funds.

Fulufhelo Makwetla, founder and managing director of Third Way Inve...