Mirova Gigaton Investment Vehicle [C142]
The Mirova Gigaton Investment Vehicle is a private debt fund targeting energy access, clean energy transition and climate investments in underserved and emerging markets in developing countries globally, with a strong focus on sub-Saharan Africa. It invests in relevant sectors in clean energy access, such as, solar home systems, mini-grids and e-mobility, impacting the lives of millions of individuals and households and contributing to poverty reduction and climate resilience.
Mirova Gigaton Investment Vehicle
Ref. NDF C142
NDF grant: USD 15 million
Project Period: 2022 - 2037
Fund Manager: Mirova SunFunder
The Mirova Gigaton Investment Vehicle is a debt fund targeting energy access, clean energy transition and climate investments in underserved and emerging markets. The fund invests in the most relevant sectors in clean energy access in developing countries: solar home systems, mini-grids, agriculture clean energy, commercial and industrial distributed solar, telecom mast solarisation, e-mobility, and energy efficiency.
The Vehicle will continue fund manager’s, Mirova’s long track record in financing small and early-stage solar power energy access companies. The Vehicle is able to provide larger loans than the current lenders on average, and thereby support the further scale-up and the transition of the energy access sector to a new phase.
The main objectives of the fund are: (i) providing 10 million people with access to modern, affordable, and clean energy; (ii) reducing GHG emissions by 17 million tons of CO2e; (iii) creating 2.2 million new jobs; (iv) providing more than USD 1 billion debt financing and; (v) having 50% of the individual beneficiaries to be women and girls.
The Mirova Gigaton Investment Vehicle will provide roughly USD 2-20 million loans with tenors of three to 12 years to fund working capital, asset financing and business expansion needs of early-stage and growth-stage companies in the distributed solar markets in developing countries.
The fund will finance companies involved in
solar-powered home appliances and solar home systems (SHS);
productive use applications in agriculture and food supply chain;
commercial and industrial (C&I) applications, including solarisation of telecom masts;
energy efficiency solutions; and
non-energy climate solutions including adaptation and resilience.
The Vehicle’s Theory of Change (which you can see in the Project document below, Annex A) explains how the activities are intended to lead the specific targeted results and impacts. The intervention has three main activities; 1) tailored debt financing for companies in the target sectors; 2) business readiness support to investee / borrower companies; and 3) mobilisation of co-financing, including private sector investors.
The fund has a blended finance structure. NDF provides USD 15 million investment in the catalytic junior tranche of the Fund. The target size of Gigaton Empowerment Fund is USD 500 million.
Aleksi Lumijärvi (aleksi.lumijarvi(a)ndf.int)