Vetiva, Climate Finance Advisory, AGF sign MoU to launch $100 million green fund
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March 14, 20191K views0 comments
Vetiva Capital Management Limited has signed a Memorandum of Understanding with Climate Finance Advisory Limited and the African Guarantee Fund West Africa (AGF) to launch the Green Energy Fund (GEF) Program, a renewable energy fund which is expected to raise $100 million in the next 5 years.
According a statement made available to business a.m., the fund is expected to focus on bankable, commercially viable and socially responsible renewable energy generation and distribution, while leveraging available public and private sector credit funds to facilitate access to flexible finance to eco-friendly energy projects.
The green energy projects that the fund is looking to support are captive power and mini- grid power projects where renewables and gas are preferred sources of energy.
Speaking on the agreement, Jubril Adeojo, Director and Chief Investment Adviser at Climate Finance Advisory Limited, said that “the ultimate aim of the tripartite partnership is to create green asset portfolio in excess of $100 million over a period of 5 years. AGF will provide up to 50 percent partial risk guarantee to enable green energy project developers’ access up to 10 years long-term local currency concessional loans to implement their green projects.”
Adidja ZANOUVI, Managing Director of AGF West Africa expressed her pleasure with the MoU, and that “AGF West Africa is pleased, to be part of this tripartite partnership as a partial guarantor to enhance access to finance for climate and green growth-oriented SMEs in Nigeria and West Africa at large.”
Also speaking on the agreement, Damilola Ajayi, Group Executive Director at Vetiva, stated that “the signing of this MOU is another important step in facilitating flow of funding towards bankable, commercially viable and environmentally friendly energy projects in Nigeria and, indeed, the rest of Africa. This does not only provide alternative capital deployment channels for investors but seeks to contribute to addressing the energy deficit in Nigeria.”
Vetiva had earlier signed a partnership agreement with Climate Bonds Initiative (UK) to develop a liquid green and climate bond market in Africa.
“On the final note, we are glad that the program has come when Nigeria is strategically making laudable moves to attain its nationally determined contributions (NDCs) to the Paris Agreement on combating climate change,” Adeojo added.