Climate-focused investment vehicle launched for Africa
InfraCo Africa and Helios Investment Partners are joining forces to establish a pan-African investment vehicle – Climate, Energy Access and Resilience (CLEAR)
The vehicle launch was announced at a UK government event at COP26 summit in Glasgow, revealing it will fund climate-aligned infrastructure and businesses, and work toward achieving UN sustainable development goals.
The initiative evolved out of the growing demand from local and international investors for sustainable investment opportunities in the continent.
CLEAR aims to leverage a pipeline of projects from InfraCo and Helios across 3 core themes:
clean energy and energy transition
green transportation and mobility
sustainable growth and consumption
It expects to raise more than $350 million in investments, connect 1 million people to power for the first time, and prevent 100 million tonnes of carbon emissions.
Initially conceived as a private structure, the vehicle anticipates being publicly listed within 3 years after final close.
Gilles Vaes, InfraCo Africa’s chief executive, stated: “We have long been aware of the disconnect between available capital and investor interest in African infrastructure, and the quantity of bankable, high-quality projects for these investors to invest into."
He added: “With our market-leading African infrastructure expertise, Helios and InfraCo Africa are excited to launch a vehicle which will enable investors to feel confident in the environmental credentials and likely returns of their investments.
"CLEAR will also provide an opportunity for project developers to exit their projects, recycling their development finance and accelerating access to inclusive, clean infrastructure for Africa’s growing population.”
Babatunde Soyoye, managing partner and co-founder of Helios, said: “We believe the African continent holds tremendous opportunities for growth with impact driven by demographic growth and rapid urbanisation."
He added: “We are excited to partner with InfraCo Africa on CLEAR to catalyse institutional capital for climate aligned projects and businesses at scale in Africa which we hope will make a significant contribution to delivering sustainable economic growth.”