IFC proposes investment in Cygnum-managed fund
UGEAP is targeting $300 million to finance distributed renewable energy projects in sub-Saharan Africa.
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The International Finance Corporation (IFC) has disclosed a proposed equity investment of up to $50 million in the Universal Green Energy Access Programme (UGEAP), a sub-Saharan Africa-focused fund financing distributed renewable energy projects. UGEAP is managed by Cygnum Capital.
The proposed investment would be made in UGEAP’s Class A preferred equity tranche. UGEAP is targeting $300 million, comprising $200 million in Class A preferred equity and $100 million in Class B junior subordinated preferred equity.
UGEAP provides financing for distributed renewable energy projects through on-lending to financial institutions and co-investments. Its focus includes off-grid electrification, mini-grids and other renewable energy infrastructure.
The Green Climate Fund and the European Investment Bank are limited partners in UGEAP.
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