STANLIB launches fund to help finance the energy transition in Africa
STANLIB has launched the STANLIB Khanyisa Energy Transition Fund.
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STANLIB has launched the STANLIB Khanyisa Energy Transition Fund. The objective of the fund is to mobilise much needed capital from long-term investors to help finance South Africa’s energy transition needs, extending into the rest of the continent in future.
“The energy transition theme, which at its core is a disruptive technological revolution, will require significant capital but also presents an investment opportunity that will take many years to fully mobilise and fund. The STANLIB Khanyisa Energy Transition Fund is designed to provide easier access to mobilise capital to fund this transition and the opportunities this transition presents,” says Johan Marnewick, head of STANLIB’s Credit Alternatives and one of the fund’s portfolio managers.
The fund’s target investors are retirement funds, life insurance companies and various other investors such as fixed income asset managers and development finance institutions. It aims to deliver compelling risk-adjusted returns from a portfolio of credit instruments with exposure to initially South African and eventually other African entities. Those instruments will include investment-grade South African corporate debt, asset-backed finance, development and project finance.
“The fund invests in credit assets, which offer predictable cash flows within lower risk parameters to meet the return objectives of investors. These energy transition assets are often not available on listed, more traditional markets and provide access to real economy business opportunities that have diversification benefits for investment portfolios,” Marnewick adds.
The Khanyisa Energy Transition Fund will target energy transition assets including renewable energy, decentralised energy, gas as a transition fuel, critical minerals, green hydrogen infrastructure, and the revolution in transport which refers to the whole eco-system needed to support the move to hybrid and electric vehicles.
The lead portfolio manager is Kholofelo Molewa, who manages the developmental and infrastructure strategies within STANLIB’s Credit Alternatives investment team.
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