Funds

Our Vision

We believe that sustainable investing and profitability go hand in hand. Our long-term vision is to play a transformative role in the energy, water & oceans, sanitation, landscape and sustainable cities sectors. To realise this vision, we are creating and developing a series of financing facilities, each focussed on a vital element of climate change mitigation or adaptation.

Our Funds

CFM’s initial focus has been on managing Climate Investor One, with a mandate to finance renewable energy projects in emerging markets.

Building on the momentum of CI1, CFM is currently fundraising for Climate Investor Two (CI2), which will focus on the sectors of water, sanitation, and oceans. CI2 reached third close of USD 875 million on 2nd November.

Renewable Energy
Water, Sanitation & Oceans
Energy Transition & Green Hydrogen
Green
Grids
Resilient
Cities

Climate Investor One (CI1) is a blended finance facility delivering renewable energy infrastructure projects in emerging markets with a technological focus on:

  • Onshore and near-shore wind
  • Solar PV
  • Run-of-river Hydro.

CI1 employs a mix of public and private-sector funding as well as commitments from development finance institutions (DFIs) whilst making use of an export credit agency (ECA) guarantee, all in mutually beneficial and complementary ways.

Public-sector donors fund the development stage of the projects, which typically cannot be financed by private-sector investors. Donors also play a key role in mobilizing private-sector capital during the construction stage of the project, where risks are better understood and financial returns can be achieved. CIO donors include the European Union (EU), the Green Climate Fund (GCF), USAID via PowerAfrica, the Nordic Development Fund (NDF) and the Directorate General for International Cooperation (DGIS) within the Ministry of Foreign Affairs of the Netherlands.

CI1 offers financing for the entire lifecycle of a project to developers, from design to construction and into operations through a post-construction refinancing.

To achieve this, CI1 comprises three funds, each targeted at a different project stage:

THE DEVELOPMENT FUND

The Development Fund (USD 50 million) funds up to 50% of the planning and development stage of a project. It offers both technical assistance and financing.

CONSTRUCTION EQUITY FUND

The Construction Equity Fund (USD 800 million) funds the construction phase of a project, financing up to 75% of the construction funding requirement through equity, thereby eliminating the traditional need for debt during construction.

REFINANCING FUND

Operating as a post-construction debt facility, the Refinancing Fund, yet to be established, will look to provide long-term senior debt to a project once it is fully operational.

Tier 1 Donor Capital – USD 160million
Tier 2 Commercial Investors – USD 320million
Tier 3 Institutional Investors – USD 320million

Climate Investor Two (CI2) is CFM’s second blended finance facility, delivering water, sanitation, and oceans infrastructure projects in emerging markets.  Established in 2019, the fund reached its third close on 2 November 2023 with USD 875 million in commitments and is targeting a final close of USD 1 billion by March 2024.

CI2 employs a mix of public and private-sector funding as well as commitments from development finance institutions (DFIs), all in mutually beneficial and complementary ways.

Public-sector donors fund the development stage of the projects, which typically cannot be financed by private-sector investors. Donors also play a key role in mobilizing private-sector capital during the construction stage of the project, where risks are better understood and financial returns can be achieved.

CI2 was formed in partnership with Dutch Fund for Climate and Development (DFCD) and the European Commission to mobilize private sector investment at scale in water, waste management and oceans infrastructure in CFM’s focus markets of Latin America, Africa and Asia. CI2 is supported by multiple public and private sector organizations, including development finance institutions, multilateral finance institutions, banks and other commercial investors from across the globe. To date, the Fund has committed c. USD 205 million to 15 projects including waste-to-energy platforms in South Africa and Thailand, desalination initiatives in Kenya and Thailand and pan-Africa and Intra-Asia green shipping companies. It has also implemented the world’s largest debt-for-nature conversion in Ecuador to protect one of the planet’s most important ecosystems: the Galapagos Islands.

CI2 offers financing for the entire lifecycle of a project to developers, from design to construction, and into operations through post-construction refinancing.

To achieve this, CI2 comprises of three funds, each targeted at a different project stage

THE DEVELOPMENT FUND

The Development Fund (USD 90 million total financing expected at final close) funds up to 50% of the planning and development stage of a project. It offers both technical assistance and financing.

CONSTRUCTION EQUITY FUND

The Construction Equity Fund (USD 1 billion total financing expected at final close) funds the construction phase of a project, financing up to 75% of the construction funding requirement through equity, thereby eliminating the traditional need for debt during construction.

REFINANCING FUND

Operating as a post-construction debt facility, the Refinancing Fund, yet to be established, will look to provide long-term senior debt to a project once it is fully operational.

Tier 1 Donor Capital – USD 250million (Final Target)
Tier 2 Commercial Investors – USD 375million (Final Target)
Tier 3 Institutional Investors – USD 375million (Final Target)

SDG NAMIBIA ONE

Windhoek, Namibia, 22nd December 2023 – SDG Namibia One Fund, Namibia’s dedicated green hydrogen blended finance vehicle and the designated funding partner to Government of Namibia’s green hydrogen initiatives (the “Fund” or “SDG Namibia One”), and Hyphen Hydrogen Energy (“Hyphen”) have concluded a share subscription agreement, following which the Fund will take up a 24% stake in the country’s landmark Hyphen green hydrogen project (the “Project”). The Fund’s equity subscription will be backed by an initial EUR 23 million development funding to the Project.

Windhoek Namibia, Monday 19th June 2023: Today, the Government of the Republic of Namibia (Government) is pleased to announce the conclusion of agreements for the establishment and management of Nam-H2 Fund Managers, a new infrastructure asset manager that will incubate the synthetic fuels sector in Namibia.

On Tuesday 8th November, during the United Nations Climate Change Conference in Sharm El-Sheikh, Egypt, better known as COP27, the ‘SDG Namibia One Fund’ was officially launched. This new fund is premised on the principles of an innovative blended finance platform to facilitate and accelerate the development of a green hydrogen sector and economy in Namibia. The fund is created through a partnership between the Environmental Investment Fund of Namibia (owned by the Namibian Government), Climate Fund Managers and Invest International, both from the Netherlands.

SA-H2 FUND

 

Pretoria, 20 June 2023: Today, during the visit of Prime Minister Mark Rutte from the Netherlands and Prime Minister Mette Frederiksen from Denmark to President Cyril Ramaphosa, a Heads of Agreement has been concluded with the intention to launch a new ‘SA-H2 Fund’ (SA-H2). SA-H2 is an innovative blended finance fund, that will facilitate and accelerate the development of a green hydrogen sector and circular economy in South Africa. The Fund is supported by Climate Fund Managers (CFM) and Invest International B.V. (II) of the Netherlands, Sanlam Limited of South Africa (Sanlam), the Development Bank of Southern Africa (DBSA), and the Industrial Development Corporation of South Africa (IDC), in collaboration with other strategic partners.

GAIA

Dubai, 4 December 2023: Today, during COP28 Climate Fund Managers (CFM), a Dutch-based climate-centric blended finance and EU licensed investment fund manager (AIFM), announced their appointment as AIFM of GAIA LP (GAIA), a USD 1.48 billion target private debt blended finance platform focused on climate adaptation and mitigation in emerging markets. CFM, as AIFM, have appointed Pollination, a global advisory firm focused on climate and nature, as Strategic Advisor to the AIFM. The appointments mark a leap forward in the mobilization of private sector capital at scale to address the climate crisis, fostering resilience, protecting biodiversity and positively impacting an estimated 20 million people across 25 developing countries and island states.

RTIFF

 

Cape Town, 5 March 2024: The Southern African Power Pool (SAPP), in partnership with the Southern African Development Community (SADC), today announced the appointment of climate-centric blended finance fund manager Climate Fund Managers (CFM) to manage its Regional Transmission Infrastructure Financing Facility (RTIFF), a USD 1.3 billion target facility focused on improving strategic interconnection and cross-border energy transmission in the Southern Africa region.