GAIA Climate Loan Fund reaches $600m first close
The vehicle is managed by Climate Fund Managers.
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The GAIA Climate Loan Fund has reached its first close at $600 million. The fund will provide loans to climate adaptation projects in markets most severely impacted by, and least equipped to respond to, climate change. The fund targets a total size of $1.48 billion, with final close anticipated in 2027.
Co-founded by MUFG, Japan’s largest financial group, along with FinDev Canada and the Green Climate Fund, GAIA is managed by Climate Fund Managers, a climate-focused blended finance investment firm. The fund’s delivery is supported by Pollination, a global advisory business specialising in climate and nature.
Andrew Johnstone, CEO of Climate Fund Managers, said: “GAIA marks an important step in CFM’s evolution – extending our blended finance model beyond private equity into private credit for the first time, enabling us to provide long-term funding for adaptation projects that build the resilience of climate-vulnerable communities. The first close of GAIA builds on the success of our Climate Investor One, Two and Three equity funds, which have mobilised investment in more than 50 climate-focused projects across emerging markets.”
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