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Climate Fund Managers announces first close of Climate Investor Two

Hand under water
| Sustainable Investing

Climate Fund Managers announces first close of Climate Investor Two

At COP 26, Climate Fund Managers (CFM) announced the first close of Climate Investor Two (CI2) at $US675m. CI2 combats climate change through the provision of climate resilient water, sanitation and oceans infrastructure in developing countries.  CFM was established as a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa. This is aligned to our purpose at Sanlam Investments to make a meaningful difference to communities and the planet. CI2 will focus on delivering impact aligned to several of the United Nations’ social development goals and it aims to:

  • Have 5.5 billion litres of water and waste water treated per day
  • Supply 14 million people with safe access to water
  • Provide 4 million people with sanitation
  • Avoid 3.5 million tons of CO2 emissions per annum
  • Restore or protect 75 000 hectares of wetland and coastal eco systems

Over the next two years, CI2 will continue its fundraising drive with the goal of reaching a final close of $US1bn while simultaneously putting the capital raised to work.

CI2 is CFM’s second blended finance initiative following the very successful establishment of Climate Investor One (CI1). CI2 will provide expertise, technology and financing to infrastructure projects in emerging markets by mobilizing private sector financing at scale, supported by catalytic public sector donor funding. Following CI1’s focus on renewable energy, CI2’s focus is water, sanitation and oceans infrastructure. These sectors are fundamental to human life and economic development but are also the medium through which the effects of climate change will be felt on earth. CI2 provides expertise, technology and financing to projects that help vulnerable societies mitigate and adapt to these global climate changes.

Formed in partnership with and as a part of the Dutch Fund for Climate and Development (DFCD), CI2 uses the same blended finance structure as CI1. This structure simplifies the manner in which capital is deployed and reduces complexity by delivering an innovative “whole-of-life” solution that provides a single financing source for each of the respective development, construction and operational phases of a project’s lifecycle. Through its CI2 Development Fund, CI2 provides early-stage project development services and financing. Through its CI2 Construction Equity Fund, CI2 provides equity finance that accelerates project construction. With this approach, CI2 is designed to implement more projects faster, delivering positive environmental and social impact sooner.

Building on the comprehensive support of the Government of the Netherlands, including the Ministry of Foreign Affairs through the DFCD, commercial investors (KLP, IMAS Foundation, Sanlam, Aegon Asset Management and BNG Bank), a development finance institution (FMO) and donors (European Commission and Nordic Development Fund) have committed to being the cornerstone support for CI2. This first closing highlights and reaffirms a broad public and private sector commitment to innovative climate change solutions.

About CFM:

CFM is a leading blended finance fund manager dedicated to securing a sustainable future by investing across global emerging markets. CFM has a long-term vision to structure cutting edge financing facilities around core areas of climate change mitigation and adaptation, including energy, water, sustainable land use, oceans and sustainable cities. CFM is established as a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa. CFM is also the manager of CI1, a blended finance facility which invests in solar, wind and run-of-river hydropower projects across global emerging markets.

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