LEAPFROG ASIA AND AFRICA CLIMATE TRANSITION FUND

Promoteur – Intermédiaire Financier

LEAPFROG INVESTMENTS GROUP LTD

Lieu

• Régional - Asie
• Régional - Afrique

Description

The project consists in an equity participation in Leapfrog Asia and Africa Climate Transition Fund, a growth equity fund with a target size of USD 600m (approx. EUR 560m) investments, that focuses on small and medium sized enterprises (SMEs) and mid-caps supporting climate action and environmental sustainability in Asia and Africa.

Additionality and Impact

The operation consists of an equity participation of up to USD 60m in the LeapFrog Climate Fund (the "Fund"), a growth equity closed-ended fund, investing in companies whose business models support the low-carbon transition and climate-resilient pathway in emerging markets, in line with the Global Gateway strategy, particularly the Climate and Energy investment pilar. The Fund will invest primarily in Asia (c. 70%), and in Africa (c. 30%), with 83% contribution to Climate Action. Moreover, the planned investments are expected to contribute to the local private sector development supporting its green transition across different sectors (transport, energy, environment).

 

The EIB investment would support the launch of a new fund which will address the market gaps that few other funds tackle, regarding the green transition. In emerging markets targeted by the Fund, less than 10% of the private capital is focused on climate: the Fund will positively contribute to this funding gap. By supporting the climate transition and a more climate resilient path for vulnerable persons in Africa and Asia, this Fund would participate in addressing the root causes of forced displacement and migration flows.

 

This operation is strongly aligned with EU priorities outside the EU, including in Asia and Africa, as it seeks to directly address climate change. Addressing climate change is one of the key cross-cutting objectives of the NDICI-Global Europe, with a target of 30% of funding for climate action. Climate is one of six founding principle also of the EU Global Gateway.

 

The operation will support the development priorities identified in the MIPs for several regions. The MIP for Asia and Pacific has addressing climate change as a key element of the strategic goals in the region. In addition, this operation will participate to the delivery of (i) the EU-India Clean Energy and Climate Partnership by supporting climate friendly energy sources in India, (ii) the Green Team Europe Initiative in partnership with Southeast Asia, by promoting investments into green low-carbon mobility, clean energy, and (iii) the EU-Africa Global Gateway Investment Package.

Objectifs

The aim is to contribute plugging the financing gap of climate growth capital towards SMEs and mid-caps especially in emerging Asia and Africa. The fund will contribute to the local private sector development supporting its green transition across different sectors (transport, energy, environment). The operation is in line with the EIB Climate Actions & Environmental Sustainability objectives outside the EU, as it supports climate action projects particularly in the clean energy space, low carbon mobility, and green build environment. Moreover, the fund will support the achievement of several sustainable development goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné
• Déchets solides - Production et distribution d'eau; assainissement, gestion des déchets et dépollution
• Eau, assainissement - Production et distribution d'eau; assainissement, gestion des déchets et dépollution
• Transports - Transports et entreposage
• Services - Activités financières et d'assurance

Montant BEI envisagé (montant approximatif)

USD 60 million (EUR 55 million)

Coût total (montant approximatif)

USD 600 million (EUR 549 million)

Aspects environnementaux

The fund's operational guidelines will provide for environmental and social due diligence of investee companies according to the guidelines acceptable to the EIB.

Passation des marchés

If applicable, the fund is expected to comply with the EIB's procurement guidelines.

Statut

Signé - 12/11/2024