ResponsAbility, a Swiss impact asset manager, has announced the first close of its new energy access fund at $151m. The ResponsAbility fund’s target is $200m which it predicts will close later in 2020.
The private debt fund addresses the lack of access to clean power globally with a strong focus on Sub-Saharan Africa, South and Southeast Asia.
It is set up as a blended finance structure offering different risk tranches and has received commitments from a number of prominent public and private investors. A second close is expected for later this year.
The Fund is an initiative launched in partnership with AHL Venture Partners, Ashden Trust, Bank of America, Bohemian Impact Investments, Calvert Impact Capital, Clean Technology Fund, EIB, Facebook, FMO, Good Energies Foundation, the government of Luxembourg, IFC, Norfund, OeEB, Shell Foundation, Snowball and UK DFID, among others.
Incorporated in Luxembourg as a 10-year closed-ended structure, the Fund targets companies that provide solutions to households without access to electricity and to businesses looking for cleaner, cheaper and more reliable energy.
Beyond the financing of the dynamic off-grid energy sector, it is the first investment fund of this scope to actively address the solar potential for the commercial and industrial (C&I) sector.
Over the lifetime of the fund, portfolio companies are expected to provide clean power to more than 150 m people, add 2,000 MW of clean energy generation capacity and reduce CO2 emissions by 6 m tonnes.
“With a solid track record of investing in the energy access space, a committed team of experts and a full pipeline in place, we are ready to expand our activities to include the high-impact commercial & industrial sector.
“By partnering with entrepreneurs as a first commercial lender, we want to enable clean energy businesses to scale up their activities and attract more funding in the long run,” explained Antoine Prédour who oversees responsAbility’s energy debt financing activities.
