Climate Fund Managers announces second close of CI2 at $855m

Climate Fund Managers (CFM) announced the second close of its blended finance facility Climate Investor Two (CI2) at US$855 million.

CI2 is CFM’s second climate-focused, blended finance initiative following the establishment of its first initiative: Climate Investor One (CI1). With a $1 billion target fund size, CI2 will provide expertise, technology, and financing to infrastructure projects in emerging markets by mobilising private sector financing at scale, supported by catalytic public sector donor funding. Building on CI1’s focus and expertise in renewable energy, CI2 will add a focus on water, sanitation, and oceans infrastructure. These sectors are fundamental to human life and economic development but are also the medium through which the effects of climate change will be felt on earth.

Formed in partnership with and as a part of the Dutch Fund for Climate and Development (DFCD), CI2 uses the same blended finance structure as CI1. This structure simplifies the manner in which capital is deployed and reduces complexity by delivering an innovative “whole-of-life” solution that provides a single financing source for each of the respective development, construction, and operational phases of a project’s lifecycle. Through its CI2 Development Fund, CI2 provides early-stage project development services and financing. Through its CI2 Construction Equity Fund, CI2 provides equity finance that accelerates project construction. With this approach, CI2 is designed to implement more projects faster, delivering positive environmental and social impact sooner.

In November 2021, CI2 had its debut close of $675 million. Two new investors have since joined: Swedfund, the development finance institution of Sweden has committed $35 million to the Construction Equity Fund, while the Green Climate Fund has committed $145 million in donor funding to both the Construction Equity Fund and Development Fund.