Second African renewable energy private equity fund reaches first close target
Abidjan – A Private Equity Fund with a target capitalisation of US$300 million has just achieved its first close at €130 million following a joint investment of €17.5 million from The Sustainable Energy Fund for Africa and the Climate Technology Fund through the African Development Bank.
Named the Africa Renewable Energy Fund (AREF) II, it is a successor fund to the first AREF, and its target investments include early-stage renewable projects to derisk that part of renewable investment which carries the highest risk.
In a statement issued by the African Development Bank, it was indicated that in addition to the reaching the first close target, financing will also be made available for AREF II’s Project Support Facility to fund technical assistance that supports improved project bankability, especially during the conceptualisation phase.
Other investors include the U.K.’s CDC Group, Italy’s CDP, the Netherlands Development Finance Company (FMO) and SwedFund.
“We are proud to be associated with Berkeley Energy and other like-minded investors, and look forward to AREF’s continued success and leadership in promoting sustainable power development on the continent,” said Dr Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.
In 2012, the African Development Bank selected Berkeley Energy, a seasoned fund manager of clean energy projects in global emerging markets to set up AREF. AREF II has a sharper strategic focus than its predecessor on “green baseload” projects that will deliver firm and dispatchable power to African power systems through hydro, solar, wind and battery storage technologies.
Distributed by APO Group on behalf of African Development Bank Group.