31 July 2024
Infrastructure and climate
Why we invest in this sector
Infrastructure is key to addressing economic and social development challenges. Our partnerships in the sector help build a sustainable future for people and the planet, by laying the foundations for decarbonised and resilient economies.
They help improve people’s lives by improving supplies of reliable electricity, water, internet and transport. And they increase businesses’ productivity, generate economic activity and help create jobs.
Our sector investment team works closely with our Climate Change impact team to ensure the investments we make are delivering against our Climate Change Strategy.
Our strategic focus
Our Infrastructure and Climate team has a deep understanding of the sub-sectors we invest in, as well as the opportunities they present and the challenges they face. We focus on:
- On-grid renewable energy generation
- Transmission & distribution
- Energy access (mini-grids and solar home systems)
- Commercial & industrial power
- Ports & logistics
- Toll roads
- Water and sanitation
- Resource efficiency
We also explore opportunities in on-grid gas power (when aligned with a country’s pathway to net zero by 2050), green transport, urban infrastructure, and emerging technologies such as energy storage or hydrogen.
You can read more about how and why we invest in infrastructure and climate in our sector strategy.
Products
We provide a range of capital solutions across this sector
Equity
Ticket Size ($) 20-150m+- We partner with established businesses looking to create new platforms or joint ventures
- Our areas of expertise include power generation, transmission and distribution, ports and logistics, toll assets, water utilities
- We typically take minority stakes and can consider various structures
- Open to co-investment opportunities
Project finance (debt)
Ticket Size ($) 20-150m- Long tenors of up to 18-20 years
- We are experienced in sole lender and mandated lead arranger roles
- We are expert in coordination and execution, able to work to tight deadlines
- We can provide local currency in India (INR) and South Africa (ZAR)
Energy access and efficiency (debt)
Ticket Size ($) 5-100m- We focus on solar home systems, mini-grids, commercial and industrial solar and resource efficiency
- We provide senior secured debt, on and off balance sheet, unsecured or subordinated debt
- We can adapt tenors to meet market need
- We can provide local currency for solar home systems, and commercial and industrial solar
Funds
Ticket Size ($) 20-100m- We invest in established GPs in Africa and Asia
- We do support first-time managers on a selective basis
- We can provide project finance solutions to our GPs’ projects
