Climate Fund Managers, in partnership with Cardano Asset Management, is pleased to announce the Cardano CFM Emerging Markets Climate Credit Fund, a USD 1 billion target Private Credit Fund, which will focus on renewable energy opportunities across emerging markets.
Cardano CFM Emerging Markets Climate Credit Fund (CCF) is Climate Fund Managers’ third climate-focused, blended finance initiative and first private credit vehicle, following the establishment of two equity initiatives: Climate Investor One (CI1) and Climate Investor Two (CI2). CCF will provide financing solutions for a diversified portfolio of Steady state operational renewable energy projects across Africa, South-East Asia, Latin America and developing Europe, with a focus on solar, wind, hydropower, and waste-to-energy technologies.
The majority of CCF’s project pipeline has been equity financed by CI1 and CI2, in turn providing CCF with a right to match funding terms on the subsequent debt raise for these projects. This results in a self-perpetuating, proprietary pipeline of renewable energy assets for the fund and completes CFM’s goal to offer comprehensive financing structures over the entire project lifecycle (development, construction, and operations). CCF provides an attractive entry into a market that is not readily available for institutional private credit investors including access to long term contracted cashflows, fully secured with credible off takers and a deep green theme of renewable energy. CCF’s investment strategy is designed to deliver attractive risk-adjusted returns to investors while also having a positive impact on the environment and local communities. All investments will help to support the transition to a low-carbon economy and contribute to the fight against climate change.
Formed in partnership with Cardano Asset Management (Cardano), CCF aims to use the same blended finance structure as CI1 and CI2 which mobilize private sector financing at scale, supported by catalytic public sector funding. The fund will provide investors with a unique private credit opportunity to gain access (at scale) to the rapidly growing renewable energy sector in emerging markets. Both Cardano and CFM have extensive experience in emerging market investments, having previously raised funds focused on a range of impact themes including renewable energy, water and sanitation, financial inclusivity, and SME development.
CCF, an Article 9 fund under the SFDR, is targeting a first close of USD 500 million (by late 2023) and Final Close of USD 1 billion.
CFM is a leading blended finance fund manager dedicated to securing a sustainable future through investing across global emerging markets. CFM has a long-term vision to structure cutting edge financing facilities around thematic areas of climate change mitigation and adaptation, including renewable energy, water, sanitation and oceans, sustainable land use and sustainable cities. 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. CFM is also the manager of CI1 and CI2, blended finance facilities which invest in climate-themed projects across global emerging markets.
About Cardano Asset Management
Founded in 2000, Cardano is a privately-owned, purpose-built pensions advisory and investment specialist with a leading-edge sustainability offering. We are widely recognised as a market leader in the provision of specialised services to pension schemes and long-term savings organisations in the Netherlands and the United Kingdom. In January 2022, Cardano acquired ACTIAM, a sustainable investor, with 30 years’ sustainability-related experience, and a dedicated team of sustainability professionals with expertise in sustainability issues, environmental, social and governance (ESG) data and research, and stewardship. ACTIAM was one of the first asset managers in the world to invest sustainably, considering concepts such as planetary boundaries and social foundations, which we have incorporated into a combined sustainability policy. Our 500 professionals strive to deliver better and more secure financial outcomes. The combined organisation in the Netherlands has EUR 50 billion AUM (as of 31 December 2022).