Climate Investor One (CI1) is pleased to announce it will be exiting its successful investment in Cleantech Solar.
CI1 made the acquisition of a 50% equity interest in Cleantech Solar Asia Pte Ltd (Cleantech) in Q3 2018, from which time Cleantech has expanded its portfolio from 72MW to 600MW, establishing itself as a supplier of choice in the South and Southeast Asian market for commercial and industrial renewable energy solutions. Once the full 600MW Cleantech portfolio becomes operational, it will generate 828 GWh per year of clean electricity, avoiding 659,475 tonnes of CO2 or equivalent per year, and serving 746,278 people.
CI1 is the flagship facility launched by Climate Fund Managers in 2017, which utilizes a unique ‘whole-of-life’ financing approach, designed to guide companies and projects from an early-stage of development, through construction, and into full operational implementation. Over its 20-year lifetime, CI1 aims to develop, construct, and operationalise approximately 30 renewable energy projects in the emerging markets, of which Cleantech is one.
CI1’s investment in Cleantech comprised of an initial capital injection, followed by two further top ups as the business accelerated through its growth phase. This ability to continuously support Cleantech’s growth was a key component of the CI1 investment strategy and showcases the flexibility of CI1.
Additionally, CFM and Cleantech have collaborated on establishing a multi-year community benefits programme, creating a legacy which will endure beyond the CI1 exit. This programme focuses on providing women in the state of Maharashtra, India, with improved access to cleaner cooking solutions in an area which is affected by extreme poverty and deforestation.
CFM’s CEO, Andrew Johnstone, said the following “CI1’s investment in Cleantech has been a very strong proof of concept for both CI1, and the broader approach of Blended Finance. Blended finance brings together different types of investors in a flexible and structured manner, which gives investors access to the asset class whilst at the same time providing the right type of capital to projects and companies, at the right time. The CI1 funding model has enabled Cleantech to operationalise 400MW in just three and a half years, which is needed for both planet and people. We need to continue to scale this impact.”
About Climate Fund Managers
CFM is a leading blended finance fund manager dedicated to securing a sustainable future through investing across global emerging markets. CFMs expertise is in structuring and managing innovative financing facilities and investment of those facilities around thematic areas of climate change mitigation and adaptation, including renewable energy, water, sanitation and oceans, sustainable land use and sustainable cities to deliver capital when it is needed, at scale. Established in 2015, CFM is a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa.
Climate Investor One (CI1) is a USD 950 million blended finance facility focused on providing capital to renewable energy projects in developing countries. CI1 has a focus on Africa, South & Southeast Asia, and Latin America, and uses a whole-of-life financing approach intended to reduce implementation timelines. The facility also enjoys support from the European Commission through its External Investment Plan, as part of its wider commitment to sustainable development and climate change mitigation, as well as cornerstone support from the Public and Private Sector across North America, Africa, Europe and Asia