Mirova Gigaton Fund raises $282 million for emerging markets clean energy

Sustainable investment manager Mirova raised $282 million in commitments for its Mirova Gigaton Fund, which finances clean energy in emerging markets including Africa, Latin America, the Middle East, and Asia, surpassing half its $500 million goal. The fund's focus on SME clean-energy debt financing is directly relevant to Indian and Asian renewable developers seeking institutional capital.

Sustainable investment manager Mirova revealed that its Mirova Gigaton Fund, aimed at accelerating the shift to clean energy in emerging markets, has garnered $282 million in commitments, over half of the fund's $500 million goal a year after launch. Recent contributions include a $75 million senior commitment from the European Investment Bank (EIB), reaching this milestone since the fund's initial closing in March 2023. The fund provides medium- to long-term debt financing for clean energy initiatives in emerging regions like Africa, Latin America, the Middle East, and Asia.

Small and medium-sized enterprises in emerging markets are the primary focus, across sectors including solar home systems, agri-solar, commercial and industrial solar, telecom tower solarisation, mini-grids, e-mobility, battery storage, climate-smart food systems, energy efficiency, and carbon credit pre-financing. Aligned with the G7-founded 2X Challenge initiative, the fund also targets women's well-being by facilitating access to finance for female entrepreneurs, increasing women's access to clean energy, and fostering equitable employment, affecting clean-energy SMEs and women-led businesses across emerging economies.

Institutional investors and emerging-market clean-energy developers should monitor the fund's progress toward its $500 million goal. Alongside the EIB's $75 million commitment, Mirova disclosed a 5 million euro catalyst junior investment through the Luxembourg-EIB Climate Finance Platform, which stimulates public and private investment into high-impact emerging-market companies. Projects already backed include SunCulture, a Kenya-based solar and irrigation provider, Solar Panda, and Energy Vision in Gabon and Nigeria, offering a template developers in Asia can track for accessing the fund.

Key figure — Commitments raised: $282 million of a $500 million target