Climate Fund Managers, the fund manager of the innovative blended finance facility Climate Investor Two (CI2), announces the Second Close at USD 855 million. The Second Close increases the facility by an additional ca. USD 180 million.
Climate Investor Two (CI2) is Climate Fund Managers’ (CFM) second climate-focused, blended finance initiative following the establishment of its first initiative: Climate Investor One (CI1). With a USD 1 billion target fund size, CI2 will provide expertise, technology, and financing to infrastructure projects in emerging markets by mobilizing private sector financing at scale, supported by catalytic public sector donor funding. Building on CI1’s focus and expertise in renewable energy, CI2 will add a focus on water, sanitation, and oceans infrastructure. These sectors are fundamental to human life and economic development but are also the medium through which the effects of climate change will be felt on earth. CI2 provides expertise, technology, and financing to projects that help vulnerable societies mitigate and adapt to these global climate changes.
Formed in partnership with and as a part of the Dutch Fund for Climate and Development (DFCD), CI2 uses the same blended finance structure as CI1. This structure simplifies the manner in which capital is deployed and reduces complexity by delivering an innovative “whole-of-life” solution that provides a single financing source for each of the respective development, construction, and operational phases of a project’s lifecycle. Through its CI2 Development Fund, CI2 provides early-stage project development services and financing. Through its CI2 Construction Equity Fund, CI2 provides equity finance that accelerates project construction. With this approach, CI2 is designed to implement more projects faster, delivering positive environmental and social impact sooner.
In November 2021 CI2 had its debut successful close of USD 675 million. Today two new investors have joined CI2. Swedfund, the Development Finance Institution (DFI) of Sweden have committed in Construction Equity Fund with USD 35 million, and the Green Climate Fund (GCF) have committed USD 145 million in donor funding to both Construction Equity Fund and Development Fund. This Second Closing highlights and re-affirms a broad public and private sector commitment to innovative climate change solutions.
CFM is a leading blended finance fund manager dedicated to securing a sustainable future by investing across global emerging markets. CFM has a long-term vision to structure cutting edge financing facilities around core areas of climate change mitigation and adaptation, including energy, water, sustainable land use, oceans and sustainable cities. CFM is established as a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa. CFM is also the manager of CI1, a blended finance facility which invests in solar, wind and run-of-river hydropower projects across global emerging markets.
Green Climate Fund (GCF) is a critical element of the historic Paris Agreement. It is the world’s largest climate fund, mandated to support developing countries raise and realize their Nationally Determined Contributions (NDC) ambitions towards low-emissions, climate-resilient pathways.
Swedfund, a state-owned company, is Sweden’s development finance institution and aims to contribute to poverty reduction through sustainable investments in the world’s poorest countries.