Release date: 1 July 2021
Promoter – Financial Intermediary
ALLIANZ GLOBAL INVESTORS GMBHLocation
Description
Equity investment of up to EUR 15 million from the Luxembourg-EIB Climate Finance Platform (LCFP) in the junior tranche of the Emerging Market Climate Action Fund (EMCAF), a fund of funds targeting EUR 500 million to be invested in funds addressing climate mitigation and climate adaptation / environmental sustainability in developing countries. EMCAF will be managed by Allianz Global Investors, to which the EIB would act as Investment Advisor.
Additionality and Impact
The operation concerns an investment - under the Luxembourg-EIB Climate Finance Platform ("LCFP")- of up to EUR 15m in the junior equity of the Emerging Market Climate Action Fund ("EMCAF" or "Fund), a new fund-of-funds with a target size of EUR 500m managed by Allianz Global Investors and advised by the EIB.
In line with new EU Consensus on Development and other policy statements, EMCAF will support funds investing in Paris-aligned climate mitigation (mainly renewable energy and energy efficiency), climate adaptation and environmental sustainability projects in developing countries (aligned with Nationally Determined Contributions (NDC)). The operation will contribute to a number of Sustainable Development Goals, most notably 7 and 13, but also 6,8,9,11,14,15 and 17.
The operation will address the market failures of negative climate and environmental externalities, mobilizing equity investments for the reduction of carbon emissions and air pollution, as well as for climate adaptation and environmental sustainability projects. The junior equity tranche has a catalytic role to crowd-in senior private investors by overcoming their risk aversion.
The interaction with the promoter during the appraisal, and the involvement of the EIB as investment advisor, benefit the standards applied by the Fund and its strategy.
Objectives
The resources of the Fund will be utilised to provide financial support to infrastructure and climate funds, which will finance greenfield climate adaptation and mitigation projects in developing countries (non-OECD), in addition to environmental projects. The projects will contribute to avoiding or reducing greenhouse gas emissions.
Comments
Disclaimer: This information is not an intended offering by AllianzGI for investors.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 15 million
Total cost (Approximate amount)
EUR 500 million
Environmental aspects
The Bank will require that the funds to be financed ensure that all investments are compliant with EIB social and environmental standards and guidelines, as well as with the specific requirements of LCFP . The capacity of the fund manager to assess and monitor environmental and social impact and risks of the individual investments to the satisfaction of the Bank will be further assessed during appraisal.
Procurement
The Bank will require the Fund to ensure that all EIB-eligible investments are implemented in accordance with the Bank's Guide to Procurement.
Status
Signed - 4/11/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).