Swedfund invests in solar energy debt vehicle
Swedfund has invested $30 million in the Mirova Gigaton Fund, which aims to support off-grid solar energy projects in developing countries through debt financing. ”Solar energy solutions are crucial to achieving the 2030 goal of universal access to affordable, reliable and sustainable energy,” said Swedfund CEO Maria Håkansson.
Mirova, Natixis Investment Managers’ sustainable investment affiliate, has collaborated with Mirova SunFunder East Africa, its Nairobi-based subsidiary, to create this blended finance debt fund. The fund primarily targets emerging countries in Africa and Asia Pacific to expedite the clean energy transition.
With a target size of $500 million, the fund will focus on SMEs across various sectors, including solar home systems, agri-solar, commercial and industrial solar, telecom tower solarisation, mini-grids, e-mobility, battery storage, climate-smart food systems, energy efficiency and carbon credit pre-financing.
Swedfund, a long-time partner of Mirova SunFunder, invested $12 million in the company’s previous debt fund in 2020.